Following are the income statement and some additional information for Carolina Consulting Company.    Carolina Consulting Company Income Statement For the Year Ended December 31, 2018 Net sales       $ 19,000     Cost of goods sold         (3,300 )   Gross margin         15,700     Operating expenses $ 3,800           Depreciation expense   1,800     (5,600 )   Income before taxes         10,100     Income taxes         (3,400 )   Net income       $ 6,700          All sales were on credit and accounts receivable decreased by $1,080 in 2018 compared to 2017. Merchandise purchases were on credit with a decrease in accounts payable of $880 during the year. Ending inventory was $680 larger than beginning inventory. Income taxes payable increased $480 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. (Amounts to be deducted should be indicated with a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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, 2018
Net sales       $ 19,000    
Cost of goods sold         (3,300 )  
Gross margin         15,700    
Operating expenses $ 3,800          
Depreciation expense   1,800     (5,600 )  
Income before taxes         10,100    
Income taxes         (3,400 )  
Net income       $ 6,700    
 

  
All sales were on credit and accounts receivable decreased by $1,080 in 2018 compared to 2017. Merchandise purchases were on credit with a decrease in accounts payable of $880 during the year. Ending inventory was $680 larger than beginning inventory. Income taxes payable increased $480 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. (Amounts to be deducted should be indicated with a minus sign.)
  

 

 

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