US 16-6 (Algo) Indirect: Computing cash from operations LO P2 MOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 560,000 349, 500 210, 400 128,500 45,000 38,900 14, 300 5 24,600 MOSS COMPANY Selected Balance Sheet Information At December 31 2021 2020 Current assets Cash $ 89, 150 $ 31,300 Accounts receivable 29.500 41,000 Inventory 54,500 55,000 Current liabilities Accounts payable 39,400 30,200 Income taxes payable 2.500 3.100 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.) 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) Cash Rows from operating acties Adjustment to reconcile net income to net cash provided by opening activities Income statement items not affecting cash $ 45,000 Changes in current operating assets and liabilities 45.000 45.000 5