Answer:
Net cashflow from operating activities =$7,726
Explanation:
The net cash flow from operating activities would be the sales revenue less net purchases.
<em>The net purchases = total purchases - less the purchases returns</em>
12,500 - 1,200 =11300
<em>The amount due on the purchases less discount</em>
The term 2/10, n/30 implies that the company would get a discount of 2% should it pay within 10 days other it would pay the gross amount due at later date but on or before the 30th day.
Payment due less discount = 98%× 11300 = 11,074
Net cashflow from operating activities = Net sales - purchases
=18,800 - 11,074 = 7,726
Net cashflow from operating activities =7,726
