Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTERIncome StatementFor the year ended December 31, 2024Net sales $1,625,000Expenses: Cost of goods sold$980,000 Operating expenses490,000 Depreciation expense43,000 Income tax expense33,000 Total expenses 1,546,000Net income $79,000 PEACH COMPUTERSelected Balance Sheet DataDecember 31 20242023Increase (I) or Decrease (D)Cash$95,000$81,500$13,500(I)Accounts receivable46,70052,5005,800(D)Inventory68,00051,50016,500(I)Prepaid rent2,3003,6001,300(D)Accounts payable38,00033,5004,500(I)Income tax payable4,3006,5002,200(D) Required:Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (Amounts to be deducted should be indicated with a minus sign.) > Answer is complete but not entirely correct.PEACH COMPUTERStatement of Cash Flows (partial)For the Year Ended December 31, 2024Cash flows from operating activitiesCash received from customersCash paid to suppliersCash paid for operating expensesCash paid for income taxesNet cash flows from operating activities$ 1,630,800992,000 ×(488,700)(35,200)$ 2,098,900

Purchases = Cost of goods sold + Ending inventory - Beginning inventory= $980,000+$68,000 -…

Answered: > Answer is complete but not entirely…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Portions of the financial statements for Peach Computer are provided below.

PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Net sales		$1,625,000
Expenses:
Cost of goods sold	$980,000
Operating expenses	490,000
Depreciation expense	43,000
Income tax expense	33,000
Total expenses		1,546,000
Net income		$79,000

	2024	2023	Increase (I) or Decrease (D)
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Cash	$95,000	$81,500	$13,500	(I)
Accounts receivable	46,700	52,500	5,800	(D)
Inventory	68,000	51,500	16,500	(I)
Prepaid rent	2,300	3,600	1,300	(D)
Accounts payable	38,000	33,500	4,500	(I)
Income tax payable	4,300	6,500	2,200	(D)

Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (Amounts to be deducted should be indicated with a minus sign.)