MOSS COMPANY Income Statement For Year Ended December 31, 2019 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 cash flows from operating activities using the indirect method. (Amounts to be dedu should be indicated by a minus sign.) ducted $ 23,800 $ 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 Income taxes payable decrease Net cash provided by operating activities 44,000 11,000 (91,000) 8,700 (550) 54,050 26,200 50,000 $ Saved QS 12-6 Indirect: Computing cash from operations LO P2 MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 2018 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, 2019 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 expenso 7.700 Net Income $ 18, 200 Use the information above to calculate cash flows from operating activities using the indirect method. (Am should be indicated by a minus sign.) Cash flows from operating activities income Austments to reconcile net income to operating cash flow $ 23.800 < Prey 3 of 9 Next > F2 30 F3 ORD DOD F4 OW
