Answer:
Amount of cash flow will be $2328
So option (B) will be the correct answer
Step-by-step explanation:
We have given total merchandise = $4000
And return merchandise = $1600
Here
means if Sheridan Company makes the payment within 10 days then he will get discount of 3 % as in the question he makes the payment within 10 days so he will will get 3 % discount
Now amount of cash received = total merchandise - return merchandise
= $4000 - $1600 = $2400
Now discount is 3 %
So after discount amount received

So option (B) will be the correct answer