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oliveclam265Lv1
28 Sep 2019
5. Ace Co. purchased inventory that cost $10,000 under terms2/10, n/30. The inventory was delivered under terms FOBdestination. Freight costs of $500 were paid in cash. Ace paid forthe inventory within ten days. Ace sold the goods on account for$13,000, freight terms FOB destination. Freight costs of $320 werepaid in cash.
Ace would report net cash inflow from operating activities onits statement of cash flows of
a. $(9,800)
b. $(10,120)
c. $2,880
D. $3,200
5. Ace Co. purchased inventory that cost $10,000 under terms2/10, n/30. The inventory was delivered under terms FOBdestination. Freight costs of $500 were paid in cash. Ace paid forthe inventory within ten days. Ace sold the goods on account for$13,000, freight terms FOB destination. Freight costs of $320 werepaid in cash.
Ace would report net cash inflow from operating activities onits statement of cash flows of
a. | $(9,800) | |
b. | $(10,120) | |
c. | $2,880 | |
D. | $3,200 |
Beverley SmithLv2
28 Sep 2019