Fall River, Inc. uses the perpetual inventory method. During the year, Fall River purchased $30,700 of inventory on account under the terms 2/10, net 30. After receipt of the merchandise, Fall River discovered some of the merchandise was defective and returned $6,500 of merchandise. Fall River paid the total liability for the merchandise within the discount period. All merchandise was finally sold for $35,000 cash.
What would be the net cash flow from operating activities resulting from the above transactions?

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The Answer of Fall River, Inc. uses the perpetual inventory method. During the year, Fall River purchased $30,700 of inventory on account under the terms 2/10, net 30. After receipt of the merchandise, Fall River discovered some of the merchandise was defective and returned $6,500 of merchandise. Fall River paid the total liability for the merchandise within the discount period. All merchandise was finally sold for $35,000 cash.
What would be the net cash flow from operating activities resulting from the above transactions?