Can you please help me solve this problem with preferably math included so I can understand better your solution. Thank you for your time!

Use the following income statement and information about selected current assets and current liabilities to calculate the net cash provided or used by operating activities using the indirect method. Use the template on the next page. Hint: Add back loss on sale of land. Check: Net cash provided by operating activities should be a number greater than $38,000 but less than $41,000.

National L Inc.

Income Statement

For 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 9,000

Rent expense 6,200

Interest expense 1,900 42,100

Income from operations $33,900

Loss on sale of land 2,000

Net income $31,900

Selected beginning and ending balances of current asset and current liability accounts, all of which relate to operating activities, are as follows:

Balance

Dec. 31, 2018 Dec. 31, 2017

Accounts receivable $27,600 $24,000

Merchandise inventory 22,000 21,000

Prepaid insurance 500 600

Accounts payable 27,000 28,000

Salaries and wages payable 10,300 9,000

Interest payable 400 200