Carter Company's income statement and cash flow from operating activities (indirect method) are provided as follows ($ thousands):

a. For each of the four statements below, determine whether the statement is true or false.

b. If the statement is false, provide the (underlined) dollar amount that would make it true.

1. Carter collected $375 from customers in the current period.

2. Carter paid , $0 interest in the current period.

3. Carter paid $20 in income taxes in the current period.

4. If Carter increased the depreciation expense (for financial reporting to shareholders) by $50, it would increase its cash from operations by $50.

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Income statement Cash flow from operating activities Revenue... Cost of goods sold. $400 Net income.. $35 215 Plus depreciation expense 70 Gross profit..... Operating expenses. 185 110 Operating asset adjustmenis Less increase in accounts receivable..... Operating income. Interest expense. (25) (50) (5) 75 Less increase in inventories.. Less increase in prepaid rent. Plus increase in accounts payable. Plus increase in income tax payable.. 25 Income before taxes. 50 65 Income tax expense.. 15 Net income $ 35 Cash flow from operating activitios... $95