Sales MOSS COMPANY Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 564,000 363,600 200,400 130,000 52,000 18,400 10,300 $ 8,100 MOSS COMPANY Selected Balance Sheet Information At December 31 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable 2021 2020 $ 92,650 33,000 $ 34,800 48,000 68,000 55,700 46,400 33,700 2,850 3,800 Use the information above to calculate 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 net cash provided by operating activities Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities $ 52,000 8,100 Current assets Cash Accounts receivable Inventory Current liabilities Accounts payable Income taxes payable $ 92,650 33,000 $ 34,800 48,000 68,000 55,700 46,400 2,850 33,700 3,800 Use the information above to calculate 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 net cash provided by operating activities Income statement items not affecting cash Depreciation Changes in current operating assets and liabilities Accounts receivable decrease Inventory increase Accounts payable increase Income taxes payable decrease Accounts receivable decrease Net cash provided by operating activities $ 52,000 15,000 12,300 x 12,700 $ 8,100 950 12,300 x 105,250 $ 113,350