Following are the income statement and some additional information for Carolina Consulting company.

All sales were on credit and accounts receivable decreased by $950 in 2018 compared to 2017. Merchandise purchases on credit with a decrease in accounts payable of $750 during the year. Ending inventory was $550 larger than beginning inventory. Income tax payable increase $350 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.

Following are the income statement and some additional info Carolina Consulting Company Income Statement For the Year Ended December 31, 2018 Net sales Cost of goods sold Gross margin Operating expenses Depreciation expense Income before taxes Income taxes $12,500 (2,000 10,500 $ 2,500 1,150 (3,650) 6,850 (2,100) Net income 4,750 All sales were on credit and accountsreceivable decreased by: with a decrease in accounts payable of $750 during the year. Er Laxes payable increased $350 during the year All operating exp Required: Prepare the cash flows from operating activities section of the st deducted should be indicated witha minus sign.) Cash Flows from Operating Activities Cash received from customers 13 550 Pre earch