Rowan, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method.Rowan, Inc.Income StatementFor Year Ended December 31Sales? $248,000Cost of goods sold? 116,000Gross profit? $132,000Operating expenses?? Wages and salaries expense $ 44,000? Rent expense 16,000? Depreciation expense 30,000? Other operating expenses 18,000 108,000Income from operations? $ 24,000Gain on sale of equipment? 26,000Income before income taxes? $ 50,000Income taxes expense? 17,500Net income? $ 32,500?Additional information:Increase in accounts receivable$ 4,000Increase in accounts
payable 16,000Increase in income taxes payable 300Decrease in prepaid expenses 10,000Decrease in merchandise inventory 14,000
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| Rowan, Inc. Cash flows provided by operating activities For Year Ended December 31 | ||
| Net income | ? | $ 32,500 |
| Adjustments to reconcile net income to net cash | ? | ? |
| provided by operating activities: | ? | ? |
| Increase in accounts receivable | $ (4,000) | ? |
| Decrease in inventory | 14,000 | ? |
| Decrease in prepaid expenses | 10,000 | ? |
| Increase in accounts payable | 16,000 | ? |
| Increase in taxes payable | 300 | ? |
| Depreciation expense | 30,000 | ? |
| Gain on sale of equipment | (26,000) | ? |
| Total adjustments | ? | 40,300 |
| Net cash provided by operations | ? | $ 72,800 |
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