S 12-6 (Algo) Indirect: Computing cash from operations LO P2 MOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income MOSS COMPANY Selected Balance Sheet Information $540,000 341,600 198,400 124,500 41,000 32,900 11,400 $ 21,500 L At December 31 Current assets Cash Accounts receivable Current liabilities Inventory Accounts payable Income taxes payable 2021 2020 $ 87,150 $ 29,300 27,500 37,000 62,500 54,600 35,400 28,200 2,300 2,700 Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash) Depreciation Changes in current operating assets and liabilities Inventory increase Accounts payable increase Income taxes payable decrease Net cash provided by operating activities $ 41,000 $ 21,500 $ 41,000 62,500