Use the following information to determine cash flows from operating activities using the indirect method.

Required

Use the indirect method to prepare the operating activities section of Cruz’s statement of cash flows.

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MOSS COMPANY Income Statement For Year Ended December 31, 2020 MOSS COMPANY Selected Balance Sheet Information Sales ..... $515,000 At December 31 2020 2019 Cost of goods sold 331,600 Gross profit... 183,400 Current assets Operating expenses (excluding depreciation) Cash ..... $84,650 $26,800 121,500 Accounts receivable. 25,000 32,000 Depreciation expense 36,000 Inventory.... 60,000 54,100 Income before taxes.. 25,900 Current liabilities 7,700 $ 18,200 Income taxes expense. Accounts payable.... 30,400 25,700 Net income Income taxes payable .. 2,050 2,200