Following are the income statement and some additional information for Carolina Consulting Company.
All sales were on credit and accounts receivable decreased by $900 this year compared to last year. Merchandise purchases were on credit with a decrease in accounts payable of $700 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 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.

Question

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The Answer of Following are the income statement and some additional information for Carolina Consulting Company.
All sales were on credit and accounts receivable decreased by $900 this year compared to last year. Merchandise purchases were on credit with a decrease in accounts payable of $700 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 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 Information for Carolina