MOSS COMPANY Selected Balance Sheet Information
December 31, 2017 and 2016
2017 2016
Current assets
Cash $ 91,650 $33,800
Accounts receivable 32,000 46,000
Inventory 67,000 55,500
Current liabilities
Accounts payable 44,400 32,700
Income taxes payable 2,750 3,600
MOSS COMPANY
Income Statement
For Year Ended December 31, 2017
Sales $554,000
Cost of goods sold 359,600
Gross profit 194,400
Operating expenses
Depreciation expense $50,000
Other expenses 129,000 179,000
Income before taxes 15,400
Income taxes expense 8,800
Net income $6,600
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.)

Net cash flow from the operating activities is 69,950

Explanation:

                                   MOSS COMPANY

                   Cash flow from operating activities  

Net income                                                  $6,600

Adjustments to reconcile net income

to operating cash flow  

Depreciation expense               $50,000

Decrease account receivable   $14,000

(46,000 - 32,000)

Increase inventory                     -$11,500

( 55,500 - 67,000)

Increase account payable         $11,700

(44,400 - 32,700)

Decrease income tax payable   -$850

(2,750 - 3,600)

                                                    $63,350    $63,350

Net cash flow from operating activities     69,950

steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation: