Question - The following income statement and information about selected current assets and current liabilities is available for Peters Company:
Peters Company Income Statement For the Year Ended December 31, 2017
Sales.............................................................. $180,000
Cost of goods sold.............................................. 104,000
Gross profit from sales.......................................... $ 76,000
Operating expenses:
Salaries and wages expense.............................. $25,000
Depreciation expense...................................... 5,000
Rent expense................................................... 7,200
Insurance expense.......................................... 1,900 39,100
Income from operations........................................ $ 36,900
Gain on sale of land............................................. 2,000
Net income........................................................ $ 38,900
December 31, 2017 December 31, 2016
Accounts receivable........................ $27,600 $24,000
Prepaid expenses............................ 550 400
Merchandise inventory..................... 18,200 20,000
Accounts payable............................ 27,100 31,000
Salaries payable.............................. 10,400 9,000
Income taxes payable........................ 300 250
Required: Use the above information to calculate the net cash provided or used by operating activities using the indirect method.