Portions of the financial statements for Peach Computer are provided below. FEACH COMPUTER Income Statement For the year ended December 31, 2015 Net sales $1,575,000 Expenses: Cost of goods sold $960,000 Operating expenses 470,000 Depreciation expense 41,000 Income tax expense 31,000 Total expenses 1,502,000 Net income $73,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Total 2015 $93,000 $80,500 $12,500 (1) 2014 Increase (I) or Decrease (D) Accounts receivable 46,900 53,500 6,600 (D) Inventory 66,000 50,500 15,500 (1) Prepaid rent 2,100 Accounts payable 3,200 36,000 32,500 3,500 (1) 1,100 (D) Income tax payable 4,100 5,500 1,400 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Portions of the financial statements for Peach Computer are provided below. FEACH COMPUTER Income Statement For the year ended December 31, 2015 Net sales $1,575,000 Expenses: Cost of goods sold $960,000 Operating expenses 470,000 Depreciation expense 41,000 Income tax expense 31,000 Total expenses 1,502,000 Net income $73,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Total 2015 $93,000 $80,500 $12,500 (1) 2014 Increase (I) or Decrease (D) Accounts receivable 46,900 53,500 6,600 (D) Inventory 66,000 50,500 15,500 (1) Prepaid rent 2,100 Accounts payable 3,200 36,000 32,500 3,500 (1) 1,100 (D) Income tax payable 4,100 5,500 1,400 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Portions of the financial statements for Peach Computer are provided below.
FEACH COMPUTER Income Statement
For the year ended December 31, 2015
Net sales
$1,575,000
Expenses:
Cost of goods sold
$960,000
Operating expenses
470,000
Depreciation expense
41,000
Income tax expense 31,000
Total expenses
1,502,000
Net income
$73,000
PEACH COMPUTER Selected Balance Sheet Data
December 31
Cash
Total 2015
$93,000 $80,500 $12,500 (1)
2014
Increase (I) or Decrease (D)
Accounts receivable 46,900 53,500
6,600 (D)
Inventory
66,000 50,500
15,500 (1)
Prepaid rent
2,100
Accounts payable
3,200
36,000 32,500 3,500 (1)
1,100 (D)
Income tax payable 4,100
5,500
1,400
(D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List
cash outflows and any decrease in cash as negative amounts.)
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