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 $ 18,000 Cost of goods sold (3,100 ) Gross margin 14,900 Operating expenses $ 3,600 Depreciation expense 1,700 (5,300 ) Income before taxes 9,600 Income taxes (3,200 ) Net income $ 6,400

 All sales were on credit and accounts receivable decreased by $1,060 in 2018 compared to 2017. Merchandise purchases were on credit with a decrease in accounts payable of $860 during the year. Ending inventory was $660 

larger than beginning inventory. Income taxes payable increased $460 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.)