Reference no: EM131750641

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.