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		$ 14,500
Cost of goods sold		(2,400)
Gross margin		12,100
Operating expenses	$ 2,900
Depreciation expense	1,350	(4,250)
Income before taxes		7,850
Income taxes		(2,500)
Net income		$ 5,350

All sales were on credit and accounts receivable decreased by $990 in 2024 compared to 2023. Merchandise purchases were on credit with a decrease in accounts payable of $790 during the year. Ending inventory was $590 larger than beginning inventory. Income taxes payable increased $390 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.