Moss companyselected balance sheet informationdecember 31, 2017 and 20162017 2016current assets cash $ 91,150 $ 33,300accounts receivable 31,500 45,000inventory 66,500 55,400current liabilities accounts payable 43,400 32,200income taxes payable 2,700 3,500 moss companyincome statementfor year ended december 31, 2017sales $ 549,000cost of goods sold 357,600gross profit 191,400operating expenses depreciation expense $ 49,000 other expenses 128,500 177,500income before taxes 13,900income taxes expense 8,100net income $ 5,800 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.)cash flows from operating activities: adjustments to reconcile net income to operating cash flow

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."