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Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system.
Point 1) The company purchased $12,400 of merchandise on account under terms 2/10, n/30.
Point 2) The company returned $1,900 of merchandise to the supplier before payment was made.
Point 3) The liability was paid within the discount period.
Point 4) All of the merchandise purchased was sold for $18,800 cash.
Question 1: What is the gross margin that results from these four transactions?
Question 2: What is the net cash flow from operating activities as a result of the four transactions?
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