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

MOSS COMPANY

Income Statement

For Year Ended December $31,2021$

Sales $ $584,000$

Cost of goods sold $371,600$

Gross profit $212,400$

Operating expenses $($excluding depreciation$)132,000$

Depreciation expense $56,000$

Income before taxes $24,400$

Income taxes expense $13,300$

Net income $ $11,100$

MOSS COMPANY

Selected Balance Sheet Information

At December $3120212020$

Current assets

Cash $ $94,650$ $ $36,800$

Accounts receivable $35,00052,000$

Inventory $70,00056,100$

Current liabilities

Accounts payable $50,40035,700$

Income taxes payable $3,0504,200$

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.