QS $16-6($Algo$)$ Indirect: Computing cash from operations LO P$2$

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. QS $16-6($Algo$)$ Indirect: Computing cash from operations LO P$2$

MOSS COMPANY

Income Statement

For Year Ended December $31,2021$

Sales $ $564,000$

Cost of goods sold $363,600$

Gross profit $200,400$

Operating expenses $($excluding depreciation$)130,000$

Depreciation expense $52,000$

Income before taxes $18,400$

Income taxes expense $10,300$

Net income $ $8,100$

MOSS COMPANY

Selected Balance Sheet Information

At December $3120212020$

Current assets

Cash $ $92,650$ $ $34,800$

Accounts receivable $33,00048,000$

Inventory $68,00055,700$

Current liabilities

Accounts payable $46,40033,700$

Income taxes payable $2,8503,800$

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.