Following are the income statement and some additional information for Carolina Consulting Company. Carolina Consulting Company Income Statement For the Year Ended December 31, 2024 Net sales $ 12,000 Cost of goods sold (1,900) Gross margin 10, 100 Operating expenses $2,400 Depreciation expense 1, 100 (3,500) Income before taxes 6,600 Income taxes (2,000) Net income $ 4,600 All sales were on credit and accounts receivable decreased by $940 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $740 during the year. Ending inventory was $540 larger than beginning inventory. Income taxes payable increased $340 during the year. All operating expenses were paid for in cash. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign.
Following are the income statement and some additional information for Carolina Consulting Company. Carolina Consulting Company Income Statement For the Year Ended December 31, 2024 Net sales $ 12,000 Cost of goods sold (1,900) Gross margin 10, 100 Operating expenses $2,400 Depreciation expense 1, 100 (3,500) Income before taxes 6,600 Income taxes (2,000) Net income $ 4,600 All sales were on credit and accounts receivable decreased by $940 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $740 during the year. Ending inventory was $540 larger than beginning inventory. Income taxes payable increased $340 during the year. All operating expenses were paid for in cash. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Following are the income statement and some additional information for Carolina Consulting Company. Carolina
Consulting Company Income Statement For the Year Ended December 31, 2024 Net sales $ 12,000 Cost of goods sold
(1,900) Gross margin 10, 100 Operating expenses $2,400 Depreciation expense 1, 100 (3,500) Income before taxes
6,600 Income taxes (2,000) Net income $ 4,600 All sales were on credit and accounts receivable decreased by $940 in
2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $740 during the
year. Ending inventory was $540 larger than beginning inventory. Income taxes payable increased $340 during the year.
All operating expenses were paid for in cash. Required: Prepare the cash flows from operating activities section of the
statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F534081b7-469c-491b-9789-b1df6e525c69%2F18d654b1-bef8-499c-a4f6-6a106eaa0f00%2Frxrorui_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Following are the income statement and some additional information for Carolina Consulting Company. Carolina
Consulting Company Income Statement For the Year Ended December 31, 2024 Net sales $ 12,000 Cost of goods sold
(1,900) Gross margin 10, 100 Operating expenses $2,400 Depreciation expense 1, 100 (3,500) Income before taxes
6,600 Income taxes (2,000) Net income $ 4,600 All sales were on credit and accounts receivable decreased by $940 in
2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $740 during the
year. Ending inventory was $540 larger than beginning inventory. Income taxes payable increased $340 during the year.
All operating expenses were paid for in cash. Required: Prepare the cash flows from operating activities section of the
statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign.
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