2. The following income statement and information about selected current assets and current liabilities

is available for Peters Company:

Peters Company

Income Statement

For the Year Ended December 31, 2017

Sales..............................................................$180,000

Cost of goods sold..............................................104,000

Gross profit from sales..........................................$ 76,000

Operating expenses:

Salaries and wages expense.............................. $25,000

Depreciation expense......................................5,000

Rent expense...................................................7,200

Insurance expense.......................................... 1,90039,100

Income from operations........................................$ 36,900

Gain on sale of land.............................................2,000

Net income........................................................$ 38,900

December 31, 2017December 31, 2016

Accounts receivable........................$27,600$24,000

Prepaid expenses............................550400

Merchandise inventory.....................18,20020,000

Accounts payable............................27,10031,000

Salaries payable..............................10,4009,000

Income taxes payable........................300250

Required:

Use the above information to calculate the net cash provided or used by operating activities using the

indirect method.