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Assume the perpetual inventory method is used.
Green Company purchased merchandise inventory that cost $16,100 under terms of 3/10, n/30 and FOB shipping point.
The company paid freight cost of $610 to have the merchandise delivered.
Payment was made to the supplier within 10 days.
All of the merchandise was sold to customers for $23,700 cash and delivered under terms FOB shipping point with freight cost amounting to $410 paid by Green company.
As a result of the above transactions of Green Company, the net cash flow from operating activities was
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Assume the perpetual inventory method is used.
Green Company purchased merchandise inventory that c...
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