Following Are the Income Statement and Some Additional Information for Carolina

question 29

Essay

Following are the income statement and some additional information for Carolina Consulting Company. All sales were on credit and accounts receivable decreased by $900 in 2013 compared to 2012. 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.

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Definitions:

Medical Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions about health and disease.

Therapy

Treatment intended to relieve or heal a disorder, which can involve medical, psychotherapeutic, or other modalities.

Human Experimentation

The use of human subjects in medical or scientific research to explore the effects of variables under controlled conditions.

Social Goal

An objective or aim that is considered to benefit society as a whole, such as reducing inequality or improving public health.