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

 

Transcribed Image Text:

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. 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 Changes in current operating assets and liabilities $ 38,000 $ $ 18,900 38,000 56,900 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 2021 At December 31 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 85,650 26,000 61,000 32,400 2,150 $ 525,000 335,600 189,400 123,000 38,000 28,400 9,500 $ 18,900 2020 $ 27,800 34,000 54,300 26,700 2,400 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. 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 Changes in current operating assets and liabilities $ 38,000 $ $ 18,900 38,000 56,900 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 2021 At December 31 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 85,650 26,000 61,000 32,400 2,150 $ 525,000 335,600 189,400 123,000 38,000 28,400 9,500 $ 18,900 2020 $ 27,800 34,000 54,300 26,700 2,400

Answer rating: 100% (QA)

The question displayed seems to be asking you to use the indirect method to calculate cash flows from operating activities To perform this calculation ... View the full answer