Marion Company had these transactions during the first month of the new accounting period.
Sold merchandise for $9,000 on credit; its cost was $5,000 and it was purchased and paid for last year.
Collected $3,000 from an account receivable. The account was established in the previous year.
Used office supplies of $1,500 purchased and paid for in the prior year.
Using the above information, Marion would report net cash flow from operating activities for the new period as
A) $2,500
B) $4,000
C) $8,000
D) $6,500
E) None of the above is correct.