Following are the income statement and some additional information for Carolina Consulting Company. Carolina Consulting Company Income Statement For the Year Ended December 31, 2024 Net sales $ 12,000 Cost of goods sold (1,900) Gross margin 10, 100 Operating expenses $2,400 Depreciation expense 1, 100 (3,500) Income before taxes 6,600 Income taxes (2,000) Net income $ 4,600 All sales were on credit and accounts receivable decreased by $940 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $740 during the year. Ending inventory was $540 larger than beginning inventory. Income taxes payable increased $340 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. Note: Amounts to be deducted should be indicated with a minus sign.
Following are the income statement and some additional information for Carolina Consulting Company. Carolina Consulting Company Income Statement For the Year Ended December 31, 2024 Net sales $ 12,000 Cost of goods sold (1,900) Gross margin 10, 100 Operating expenses $2,400 Depreciation expense 1, 100 (3,500) Income before taxes 6,600 Income taxes (2,000) Net income $ 4,600 All sales were on credit and accounts receivable decreased by $940 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $740 during the year. Ending inventory was $540 larger than beginning inventory. Income taxes payable increased $340 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. Note: Amounts to be deducted should be indicated with a minus sign.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4SEB: FINANCIAL RATIOS Based on the financial statements, shown on pages 603604, for McDonald Carpeting...
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