Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual inventory system.

1) The company purchased $13,800 of merchandise on account under terms 2/10, n/30.

2) The company returned $2,500 of merchandise to the supplier before payment was made.

3) The liability was paid within the discount period.

4) All of the merchandise purchased was sold for $21,400 cash.

What is the net cash flow from operating activities as a result of the four transactions?

Multiple Choice

1. $5,100

2. $10,326

3. $7,600

4. $11,074