Indirect: Computing cash from operations LO P2
MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 2018 Current assets Cash $ 89,650 $ 31,800 Accounts receivable 30,000 42,000 Inventory 65,000 55,100 Current liabilities Accounts payable 40,400 30,700 Income taxes payable 2,550 3,200 MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales $ 534,000 Cost of goods sold 351,600 Gross profit 182,400 Operating expenses Depreciation expense $ 46,000 Other expenses 127,000 173,000 Income before taxes 9,400 Income taxes expense 5,900 Net income $ 3,500 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.)