Interpreting Cash Flow from Operating Activities
Carter Company’s income statement and cash flow from operating activities (indirect method) are provided as follows ($ thousands):

Income statement

Revenue $400
Cost of goods sold 215
Gross profit 185
Operating expenses 110
Operating income 75
Interest expense 25
Income before taxes 50
Income tax expense 15
Net income $35

Cash flow from operating activities

Net income $35
Plus depreciation expense 70
Operating asset adjustments
Less increase in accounts receivable (25)
Less increase in inventories (50)
Less increase in prepaid rent (5)
Plus increase in accounts payable 65
Plus increase in income tax payable 5
Cash flow from operating activities $95

For each of the four statements below, determine whether the statement is true or false. 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 by $50, it would increase its cash from operations by $50.