Use the information above to calculate cash flows from operating activities using the indirect method.Note: Amounts to be deducted should be indicated by a minus sign.Cash flows from operating activitiesNet incomeAdjustments to reconcile net income to net cash provided by operating activitiesIncome statement items not affecting cashChanges in current operating assets and liabilities$42,000S42.00042.000 MOSS COMPANYIncome StatementFor Year Ended December 31, 2021SalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseIncome before taxesIncome taxes expenseNet incomeMOSS COMPANYSelected Balance Sheet Information2021At December 31Current assetsCashAccounts receivableInventoryCurrent liabilitiesAccounts payableIncome taxes payable$ 87,65028,00063,00036,4002,3502020$ 545,000343,60034,40012,100$ 22,300$ 29,80038,00054,700201,400125,00042,00028,7002,800Use the information above to calculate cash flows from operating activities using the indirNote: Amounts to be deducted should be indicated by a minus sign.

Cash flow statement is the statement which represents the flows of cash transactions through…

Answered: Use the information above to calculate…

Use the information above to calculate cash flows from operating activities using the indin Note: Amounts to be deducted should be indicated by a minus sign

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

Use the information above to calculate cash flows from operating activities using the indirect method.
Note: Amounts to be deducted should be indicated by a minus sign.
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
$
42,000
S
42.000
42.000

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
MOSS COMPANY
Selected Balance Sheet Information
2021
At December 31
Current assets
Cash
Accounts receivable
Inventory
Current liabilities
Accounts payable
Income taxes payable
$ 87,650
28,000
63,000
36,400
2,350
2020
$ 545,000
343,600
34,400
12,100
$ 22,300
$ 29,800
38,000
54,700
201,400
125,000
42,000
28,700
2,800
Use the information above to calculate cash flows from operating activities using the indir
Note: Amounts to be deducted should be indicated by a minus sign.

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