The income statement of Carla Company is shown below. Carla Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net income Additional information: $1,890,000 4,410,000 6,300,000 1,590,000 450,000 700,000 $6.930,000 4,710,000 2,220,000 1,150,000 $1,070,000 1. Accounts receivable decreased $370,000 during the year. 2 Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $290,000 during the year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare the operating activities section of the statement of cash flows using the direct method.
CARLA COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2025
Cash Flows from Operating Activities
Cash Receipts from Customers
Cash Payments for Operating Expenses
Cash Payments to Suppliers
Net Cash Provided by Operating Activities
1100000
5010000
7300000
Transcribed Image Text:Prepare the operating activities section of the statement of cash flows using the direct method. CARLA COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Cash Receipts from Customers Cash Payments for Operating Expenses Cash Payments to Suppliers Net Cash Provided by Operating Activities 1100000 5010000 7300000
Administrative expenses
Net income
Additional information:
AWN2
The income statement of Carla Company is shown below.
Carla Company
Income Statement
For the Year Ended December 31, 2025
Sales revenue
Cost of goods sold
Beginning inventory
Purchases
Goods available for sale
Ending inventory
Cost of goods sold
Gross profit
Operating expenses
Selling expenses
2.
3.
5.
$1,890,000
4,410,000
6,300,000
1,590,000
450,000
700,000
$6.930,000
1. Accounts receivable decreased $370,000 during the year.
Prepaid expenses increased $160,000 during the year.
Accounts payable to suppliers of merchandise decreased $290,000 during the year.
Accrued expenses payable decreased $90,000 during the year.
Administrative expenses include depreciation expense of $50,000.
4,710,000
2,220,000
1,150,000
$1,070,000
Prepare the operating activities section of the statement of cash flows using the direct method.
Transcribed Image Text:Administrative expenses Net income Additional information: AWN2 The income statement of Carla Company is shown below. Carla Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses 2. 3. 5. $1,890,000 4,410,000 6,300,000 1,590,000 450,000 700,000 $6.930,000 1. Accounts receivable decreased $370,000 during the year. Prepaid expenses increased $160,000 during the year. Accounts payable to suppliers of merchandise decreased $290,000 during the year. Accrued expenses payable decreased $90,000 during the year. Administrative expenses include depreciation expense of $50,000. 4,710,000 2,220,000 1,150,000 $1,070,000 Prepare the operating activities section of the statement of cash flows using the direct method.
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