Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the perpetual inventory method is used. 1) Marathon Company purchased merchandise inventory that cost $8,000 under terms of 2/10, n/30 and FOB shipping point.

Assume the perpetual inventory method is used. 1) Marathon Company purchased merchandise inventory that cost $8,000 under terms of 2/10, n/30 and FOB shipping point. 2) Marathon paid freight cost of $500 on the merchandise. 3) Marathon made payment to the supplier within the discount period. 4) All of the goods were sold to customers on account for $12,000. As a result of Marathon's four transactions above, the net amount of the company's cash flow from operating activities is

Question 8 options:

1) $8,340 outflow.
2) $12,000 inflow.
3) $8,500 outflow.
4) $3,660 inflow.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles

Authors: Nformi Eugene Tawe

1st Edition

3330651032, 978-3330651036

More Books

Students also viewed these Accounting questions