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 $87,150 $29,300 Accounts receivable 27,500 37,000 Inventory 62,500 54,600 Current liabilities Accounts payable 35,400 28,200 Income taxes payable 2,300 2,700 MOSS COMPANY Income Statement For Year Ended December 31, 2017 Sales $540,000 Cost of goods sold SE341,600 Gross profit 198,400 Operating expenses Depreciation expense $ 41,000 Other expenses 124,500 165,500 Income before taxes 32,900 Income taxes expense 11,400 Net income $ 21,500 21.500 $ 41,000 Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Depreciation Accounts payable decrease Inventory increase Accounts payable increase Income taxes payable decrease 41,000 62,500 Net cash provided by operating activities