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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 $ 17,000 Cost of goods sold (2,900) Gross margin 14,100 Operating expenses Depreciation expense $ 3,400 1,600 (5,000) Income before taxes Income taxes 9,100 Net income (3,000) $ 6,100 All sales were on credit and accounts receivable decreased by $1,040 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $840 during the year. Ending inventory was $640 larger than beginning inventory. Income taxes payable increased $440 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. Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for taxes Net cash flows from operating activities $ 0

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 $ 17,000 Cost of goods sold (2,900) Gross margin 14,100 Operating expenses Depreciation expense $ 3,400 1,600 (5,000) Income before taxes Income taxes 9,100 Net income (3,000) $ 6,100 All sales were on credit and accounts receivable decreased by $1,040 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $840 during the year. Ending inventory was $640 larger than beginning inventory. Income taxes payable increased $440 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. Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for taxes Net cash flows from operating activities $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $ 17,000 Cost of goods sold (2,900) Gross margin 14,100 Operating expenses Depreciation expense $ 3,400 1,600 (5,000) Income before taxes Income taxes 9,100 Net income (3,000) $ 6,100 All sales were on credit and accounts receivable decreased by $1,040 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $840 during the year. Ending inventory was $640 larger than beginning inventory. Income taxes payable increased $440 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. Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for taxes Net cash flows from operating activities $ 0
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 $ 17,000 Cost of goods sold (2,900) Gross margin 14,100 Operating expenses Depreciation expense $ 3,400 1,600 (5,000) Income before taxes Income taxes 9,100 Net income (3,000) $ 6,100 All sales were on credit and accounts receivable decreased by $1,040 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $840 during the year. Ending inventory was $640 larger than beginning inventory. Income taxes payable increased $440 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. Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for taxes Net cash flows from operating activities $ 0
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