Following are the income statement and some additional information for Carolina Consulting Company. Carolina Consulting Company Income Statement For the Year Ended December 31, 2021 Net sales $ 14,000 Cost of goods sold (2,300 ) Gross margin 11,700 Operating expenses $ 2,800 Depreciation expense 1,300 (4,100 ) Income before taxes 7,600 Income taxes (2,400 ) Net income $ 5,200 All sales were on credit and accounts receivable decreased by $980 in 2021 compared to 2020. Merchandise purchases were on credit with a decrease in accounts payable of $780 during the year. Ending inventory was $580 larger than beginning inventory. Income taxes payable increased $380 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.) Cash flows from operating activities: Cash received from customersselected answer correct $14,980selected answer correct Cash paid for operating expensesselected answer correct (2,800)selected answer correct Cash paid for taxesselected answer correct (2,020)selected answer correct Cash paid to suppliersselected answer correct (3,080)selected answer incorrect Net cash flows from operating activities $ What is the value for paid to suppliers? I end up getting -(3,080) by 2,300 + 780 = 3,080

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, 2021
Net sales			$	14,000
Cost of goods sold				(2,300	)
Gross margin				11,700
Operating expenses	$	2,800
Depreciation expense		1,300		(4,100	)
Income before taxes				7,600
Income taxes				(2,400	)
Net income			$	5,200

All sales were on credit and accounts receivable decreased by $980 in 2021 compared to 2020. Merchandise purchases were on credit with a decrease in accounts payable of $780 during the year. Ending inventory was $580 larger than beginning inventory. Income taxes payable increased $380 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.)


Cash flows from operating activities:
Cash received from customersselected answer correct	$14,980selected answer correct
Cash paid for operating expensesselected answer correct	(2,800)selected answer correct
Cash paid for taxesselected answer correct	(2,020)selected answer correct
Cash paid to suppliersselected answer correct	(3,080)selected answer incorrect

Net cash flows from operating activities	$

What is the value for paid to suppliers? I end up getting -(3,080) by 2,300 + 780 = 3,080

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