QS 12-6 (Algo) Indirect: Computing cash from operations LO P2NOSS COMPANYIncome StatementFor Year Ended December 31, 2021WAY TINHALTSalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseIncome before taxesIncome taxes expenseNet income2005MOSS COMPANYSelected Balance Sheet Information2021At December 31Current assetsCashAccounts receivableInventoryCurrent liabilitiesAccounts payableIncome taxes payable$ 94,65035,00070,000Cash flows from operating activities:50,4003,050$ 584,000371,6002020Changes in current operating assets and liabilities212,400132,00056,00024,40013,300$ 11,100$36,80052,00056,100Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deductedshould be indicated by a minus sign.)35,7004,200Adjustments to reconcile net income to net cash provided by operating activitiesIncome statement items not affecting cash$56,000+S56,00056,000

Introduction:- Cash flows from operating activities:- Cash flow from operating activities is the…

Current liabilities Accounts payable Income taxes payable Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deducted 50,400 3,050 35,700 4,200

Current liabilities Accounts payable Income taxes payable Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deducted 50,400 3,050 35,700 4,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

QS 12-6 (Algo) Indirect: Computing cash from operations LO P2
NOSS COMPANY
Income Statement
For Year Ended December 31, 2021
WAY TINHALT
Sales
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
2005
MOSS COMPANY
Selected Balance Sheet Information
2021
At December 31
Current assets
Cash
Accounts receivable
Inventory
Current liabilities
Accounts payable
Income taxes payable
$ 94,650
35,000
70,000
Cash flows from operating activities:
50,400
3,050
$ 584,000
371,600
2020
Changes in current operating assets and liabilities
212,400
132,000
56,000
24,400
13,300
$ 11,100
$36,800
52,000
56,100
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.)
35,700
4,200
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
$
56,000
+
S
56,000
56,000

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