qs 12-6 (algo) indirect: computing cash from operations lo p2 moss company income statement for year ended december 31, 2021 sales $ 584,000 cost of goods sold 371,600 gross profit 212,400 operating expenses (excluding depreciation) 132,000 depreciation expense 56,000 income before taxes 24,400 income taxes expense 13,300 net income $ 11,100 moss company selected balance sheet information at december 31 2021 2020 current assets cash $ 94,650 $ 36,800 accounts receivable 35,000 52,000 inventory 70,000 56,100 current liabilities accounts payable 50,400 35,700 income taxes payable 3,050 4,200 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.)

Under statement of cash flow, the operating activities section indicates the amount of money a company brings in from its ongoing and regular business activities such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement.

The cash flows for operational activities section is computed as follows:

Particulars Amount

Adjustments to balance operating $11,100

cash flow and net income

From operating activities

Depreciation expense = $11,100

Decrease in accounts receivable = $17000

(52000 - 35000)

Increase in inventory = -$13900

(56100 - 70000)

Increase in accounts payable = $14,700

(50400 - 35,700)

Decrease in income taxes payable -$1,150

(3,050 - 4200)

$27,750

Net cash flow from operating activities $38,850