CAROL COMPANY INCOME STATEMENT For the Year Ended December 31, 2018 Sales Cost of goods sold $7,000,000 $2,000,000 5,000,000 Beginning inventory Purchases Goods available Ending inventory Cost of goods sold for sale $7,000,000 3,000,000 4,000,000 Gross Profit Operating expenses 3,000,000 Selling expenses Administrative $1,000,000 expenses 500,000 1,500,000 Net income $1,500,000 Additional information: 1. Accounts receivable increased by $400,000 during the year. 2. Prepaid expenses decreased by $200,000 during the year. 3. Accounts payable to suppliers of merchandise decreased by $200,000 during the year 4. Accrued expenses payable increased $100,000 during the year 5. Administrative expenses includes depreciation expense of $400,000 11. What is the change in inventory from the beginning of 2018 to the end of 2018? A. 2,000,000 B. 3,000,000 C. 1,000,000 increase D. 1,000,000 decrease E. None of the above 12. Using the indirect method, what is the amount for net cash flow from operating activities? A. 600, 000 net cash provided by operating activities B. (600,000) net cash used by operating activities C. 1,600,000 net cash provided by operating activities D. 2,100,000 net cash provided by operating activities E. None of the above 13. Using the direct method, what is the amount for cash receipts from customers? A. 7,400,000 B. 7,000,000 C. 6,600,000 D. 5,200,000 E. None of the above