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 $ 86,150 $ 28,300 Accounts receivable 26,500 35,000 Inventory 61,500 54,400 Current liabilities Accounts payable 33,400 27,200 Income taxes payable 2,200 2,500 MOSS COMPANY Income Statement For Year Ended December 31, 2017 Sales $530,000 Cost of goods sold 337,600 Gross profit 192,400 Operating expenses Depreciation expense $ 39,000 Other expenses 123,500 162,500 Income before taxes 29,900 Income taxes expense 9,900 Net income $ 20,000 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.) $ 20,000 $ 39,000 Cash flows from operating activities: Net income Adjustments to reconcile net income to operating cash flow Depreciation Accounts receivable decrease Inventory increase Accounts payable increase Income taxes payable decrease 39,000 59,000 Net cash provided by operating activities $