Use the following income statement and information about selected current assets and current liabilities to calculate the net cash provided or used by operating activities using the indirect method.PULLMAN COMPANYIncome StatementFor Year Ended December 31, 20X2Sales?$180,000Cost of goods sold? 104,000Gross profit from sales?$ 76,000Operating expenses:?? Salaries and wages expense$25,000? Depreciation expense7,000? Rent expense7,200? Interest expense 1,900 41,100Income from operations?$34,900Loss on sale of land? 3,500Net income?$31,400???Selected beginning and ending balances of current asset and current liability accounts, all of which relate to operating activities, are as follows:?Balance?Dec. 31, 20X2Dec. 31, 20X1Accounts
receivable$27,600$24,000Merchandise inventory22,30020,000Prepaid rent550400Accounts payable27,10026,000Salaries and wages payable10,4009,000Interest payable300250
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Cash flows from operating activities
| Net Income | $ | 31,400 |
cash provided by operating activities
| Increase in accounts receivable | (3,600) |
| Increase in merchandise inventory | (2,300) |
| Increase in prepaid rent | (150) |
| Increase in accounts payable | 1,100 |
| Increase in salaries and wages payable | 1,400 |
| Increase in interest payable | 50 |
| Depreciation expense | 7,000 |
| Loss on sale of land | 3,500 |
| Net cash provided by operating activities | $ | 38,400 |
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