QS 12-4 Indirect: Computing cash from operations LO P2 MOSS COMPANY Selected Balance Sheet Information December 31, 2017 and 2016 2017 2016 Current assets Cash $84,650 $26,800 Accounts receivable 25,000 32,000 Inventory 60,000 54,100 Current liabilities Accounts payable 30,400 25, 700 Income taxes payable 2,050 2,200 MOSS COMPANY Income Statement For Year Ended December 31, 2017 Sales $515,000 Cost of goods sold 331,600 Gross profit 183, 400 Operating expenses Depreciation expense $ 36,000 Other expenses 121,500 157,500 Income before taxes 25,900 Income taxes expense 7,700 Net income $ 18,200 Use the information above to calculate this company's cash flows from operating activities using the Indirect method. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. Cash flows from operating activities: Net Income Adjustments to reconcile net income to operating cash flow S 18,200 MOSS COMPANY Income Statement For Year Ended December 31, 2017 Sales $515,000 Cost of goods sold 331,600 Gross profit 183,400 Operating expenses Depreciation expense $ 36,000 Other expenses 121,500 157,500 Income before taxes 25,900 Income taxes expense 7,700 Net Income $ 18,200 Use the information above to calculate this company's cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. $ > 18,200 $ Cash fows from operating activities: Net Income Adjustments to reconcile net income to operating cash flow Depreciation Income taxes payable decrease Accounts receivable decrease Inventory increase Accounts payable increase OOOO 36,000 7,700 7,000 (5,900) 4,700 0 49,500 67.700 s Net cash provided by operating activities