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Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.00 cash. Barker sold one inventory item for $30.00 cash. Based on this information alone, without considering the effect of income tax,:
A. cash flow from operating activities is $11.00 assuming a weighted average cost flow.
B. cash flow from operating activities is $12.00 assuming a FIFO cost flow.
C. cash flow from operating activities is $10.00 assuming a LIFO cost flow.
D. the amount of cash flow from operating activities is not affected by the cost flow method.
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Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 c...
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