Assume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that cost $65,300 under terms of

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1 year ago

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Assume the perpetual inventory system is used. 1) Green Company purchased merchandise inventory that cost $65,300 under terms of

2/10, n/30 and FOB shipping point. 2) Green Company paid freight cost of $2,530 to have the merchandise delivered. 3) Payment was made to the supplier on the inventory within 10 days. 4) All of the merchandise was sold to customers for $96,600 cash and delivered under terms FOB destination with freight cost amounting to $1,730. What is the net cash flow from operating activities that results from these transactions? show your detail calculation: Cash inflow and cash outflow

Business

1 answer:

aliina [53] · Answer 1 · 2024-03-08T06:55:09+03:00

Based on the perpetual inventory system, the payment for inventory, and the freight costs, the net cash flow from operating activities is $28,346

The net cash flow for Green Company from its various transactions and using the perpetual inventory system can be found by the formula:

= Cash inflow from sales to customers - Cash outflow for freight cost - Cash outflow for freight cost to customers - Cash outflow for payment to supplier in ten days

The net cash flow from operating activities is therefore:

= 96,600 - 2,530 - 1,730 - (65,300 x (100% - 2%))

= 96,600 - 2,530 - 1,730 - 63,994

= $28,346

Find out more on net cash from operating activities at brainly.com/question/15870707

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