Assume the perpetual inventory method is used.

1) The company purchased $13,400 of merchandise on account under terms 4/10, n/30.

2) The company returned $2,900 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 $20,800 cash.

The net cash flow from operating activities as a result of the four transactions is:

2. Operating Cash Flow

The amount of cash that can be withdrawn from a firm without harming its ability to operate and to produce future cash flows.

Income found after subtracting all costs and expenses from revenue.

None of these

Earnings from operations before interest and taxes.

The cash generated from a firm's normal business activities.