2. The following income statement and information about selected current assets and current liabilities

is available for Peters Company:

Peters Company

Income Statement

For the Year Ended December 31, 2018

Sales.. $180,000

Cost of goods sold. 104,000

Gross profit from sales $ 76,000

Operating expenses:

Salaries and wages expense $25,000

Depreciation expense.. 5,000

Rent expense............ 7,200

Insurance expense 1,900 39,100

Income from operations. $ 36,900

Gain on sale of land 2,000

Net income.. $ 38,900

December 31, 2018 December 31, 2017

Accounts receivable $27,600 $24,000

Prepaid expenses. 550 400

Merchandise inventory 18,200 20,000

Accounts payable. 27,100 31,000

Salaries payable 10,400 9,000

Income taxes payable 300 250

Required:

Use the above information to calculate the net cash provided or used by operating activities using the

indirect method.