Exercise 11 -9 (Algo) Calculate operating activities-indirect method (LO11-3) Portions ofthe financial statements for Peach Computer are provided below. PEACH COMPUTER IncomeStatement For the year ended December 31, 2024 Net sales $2,025, 000 Expenses: Cost ofgoods sold $1,140,000 Operating expenses 650,000 Depreciation expense 59,000 Incometax expense 49,000 Total expenses 1,898,000 Net income $127,000 PEACH COMPUTERSelected Balance Sheet Data December 31 2024 2023 Increase (1) or Decrease (D) Cash $111,000 $89,500 $21,500 (1) Accounts receivable 45, 900 53, 500 7,600 (D) Inventory84,000 59,500 24,500 (1) Prepaid rent 3, 900 6,800 2,900 (D) Accounts payable54,000 41, 500 12,500 (1) Income tax payable 5, 900 14, 500 8,600 (D) Required: Prepare theoperating activities section of the statement of cash flows for Peach Computer using theindirect method. (Amounts to be deducted should be indicated with a minus sign.)

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operating activities section of the statement of cash flows

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Exercise 11 -9 (Algo) Calculate operating activities-indirect method (LO11-3) Portions of
the financial statements for Peach Computer are provided below. PEACH COMPUTER Income
Statement For the year ended December 31, 2024 Net sales $2,025, 000 Expenses: Cost of
goods sold $1,140,000 Operating expenses 650,000 Depreciation expense 59,000 Income
tax expense 49,000 Total expenses 1,898,000 Net income $127,000 PEACH COMPUTER
Selected Balance Sheet Data December 31 2024 2023 Increase (1) or Decrease (D) Cash $
111,000 $89,500 $21,500 (1) Accounts receivable 45, 900 53, 500 7,600 (D) Inventory
84,000 59,500 24,500 (1) Prepaid rent 3, 900 6,800 2,900 (D) Accounts payable
54,000 41, 500 12,500 (1) Income tax payable 5, 900 14, 500 8,600 (D) Required: Prepare the
operating activities section of the statement of cash flows for Peach Computer using the
indirect method. (Amounts to be deducted should be indicated with a minus sign.)

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