Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $15,000 Cost of goods sold (2,500) Gross margin 12,500 Operating expenses $3,000 Depreciation expense 1,400 (4,400) Income before taxes 8,100 Income taxes (2,600) Net income $ 5,500 All sales were on credit and accounts receivable decreased by $1,000 in 2021 compared to 2020. Merchandise purchases were on credit with a decrease in accounts payable of $800 during the year. Ending inventory was $600 larger than beginning inventory. Income taxes payable increased $400 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: Net cash flows from operating activities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started