2 QS 16-6 (Algo) Indirect: Computing cash from operations LO P2 4.76 points 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 eBook $ 535,000 339,600 195,400 124,000 40,000 31,400 10,600 $ 20,800 Hint Print 2020 References MOSS COMPANY Selected Balance Sheet Information At December 31 2021 Current assets Cash $ 86,650 Accounts receivable 27,000 Inventory 62,000 Current liabilities Accounts payable 34,400 Income taxes payable 2,250 $ 28,800 36,000 54,500 27,700 2,600 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 $ 40,000 40,000 $ 40,000