TB Problem 21-155 (Algo)

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				$	16,500
Cost of goods sold					(2,800	)
Gross margin					13,700
Operating expenses	$	3,300
Depreciation expense		1,550			(4,850	)
Income before taxes					8,850
Income taxes					(2,900	)
Net income				$	5,950

All sales were on credit and accounts receivable decreased by $1,030 in 2021 compared to 2020. Merchandise purchases were on credit with a decrease in accounts payable of $830 during the year. Ending inventory was $630 larger than beginning inventory. Income taxes payable increased $430 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.)