1 QS 16-6 (Algo) Indirect: Computing cash from operations LO P2 MOSS COMPANY Income Statement 1.11...

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1 QS 16-6 (Algo) Indirect: Computing cash from operations LO P2 MOSS COMPANY Income Statement 1.11 For Year Ended December 31, 2021 Sales $ 535,000 points Cost of goods sold 339,600 Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes 195,400 124,000 40,000 31,400 eBook Income taxes expense Net income Hint 10,600 $ 20,800 MOSS COMPANY Selected Balance Sheet Information At December 31 Current assets Ask Cash Accounts receivable Inventory Print Current liabilities References 2021 2020 $ 86,650 $ 28,800 27,000 36,000 62,000 54,500 34,400 27,700 2,250 2,600 Accounts payable Income taxes payable 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: 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 $ 40,000 $ 40,000 40,000 1 QS 16-6 (Algo) Indirect: Computing cash from operations LO P2 MOSS COMPANY Income Statement 1.11 For Year Ended December 31, 2021 Sales $ 535,000 points Cost of goods sold 339,600 Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes 195,400 124,000 40,000 31,400 eBook Income taxes expense Net income Hint 10,600 $ 20,800 MOSS COMPANY Selected Balance Sheet Information At December 31 Current assets Ask Cash Accounts receivable Inventory Print Current liabilities References 2021 2020 $ 86,650 $ 28,800 27,000 36,000 62,000 54,500 34,400 27,700 2,250 2,600 Accounts payable Income taxes payable 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: 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 $ 40,000 $ 40,000 40,000