QS $12-6($Algo$)$ Indirect: Computing cash from operations LO P$2$

MOSS COMPANY

Income Statement

For Year Ended December $31,2021$

Sales $ $540,000$

Cost of goods sold $341,600$

Gross profit $198,400$

Operating expenses $($excluding depreciation$)124,500$

Depreciation expense $41,000$

Income before taxes $32,900$

Income taxes expense $11,400$

Net income $ $21,500$

MOSS COMPANY

Selected Balance Sheet Information

At December $3120212020$

Current assets

Cash $ $87,150$ $ $29,300$

Accounts receivable $27,50037,000$

Inventory $62,50054,600$

Current liabilities

Accounts payable $35,40028,200$

Income taxes payable $2,3002,700$

Use the information above to calculate cash flows from operating activities using the indirect method.

Note: Amounts to be deducted should be indicated by a minus sign.