moss company selected balance sheet information at december 31 2020 2019 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 moss company income statement for year ended december 31, 2020 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 Use the information above to calculate this company's cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Respuesta :

The indirect method results in a $38,850 cash flow from operating activities for this company.

The amount of additional money coming into or out of an organization's operations is indicated by its net cash flow from operational activities. This includes any changes to net income as well as modifications to non-cash components.

Cash flows from operational activities.

Adjustments to balance operating cash flow and net income = 11,100

From operating activities          

Depreciation expense = 11,100  

Decrease in accounts receivable (52000 - 35000) = 17000  

Increase in inventory (56100 - 70000) = -13900  

Increase in accounts payable (50400 - 35,700) = 14700  

Decrease in income taxes payable (3,050 - 4200) = -1150       27,750

Net cash flow from operating activities = 38,850

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