Portions of the financial statements for Peach Computer are provided below. Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,700,000 $1,010,000 520,000 46,000 36,000 1,612,000 $88,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2024 2023 Decrease (D) Cash $98,000 $83,000 $15,000 (I) Accounts receivable 46,400 51,000 4,600 (D) Inventory 71,000 53,000 18,000 (I) Prepaid rent 2,600 4,200 1,600 (D) Accounts payable 41,000 35,000 6,000 (I) Income tax payable 4,600 8,000 3,400 (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.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 Cash flows from operating activities

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Portions of the financial statements for Peach Computer are provided below.
Net sales
Expenses:
PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
$1,700,000
$1,010,000
520,000
46,000
36,000
1,612,000
$88,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Increase (I) or
2024
2023
Decrease (D)
Cash
$98,000
$83,000
$15,000
(I)
Accounts receivable
46,400
51,000
4,600
(D)
Inventory
71,000
53,000
18,000
(I)
Prepaid rent
2,600
4,200
1,600 (D)
Accounts payable
41,000
35,000
6,000 (I)
Income tax payable
4,600
8,000
3,400
(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.)
PEACH COMPUTER
Statement of Cash Flows (partial)
For the Year Ended December 31, 2024
Cash flows from operating activities
Transcribed Image Text:Portions of the financial statements for Peach Computer are provided below. Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,700,000 $1,010,000 520,000 46,000 36,000 1,612,000 $88,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2024 2023 Decrease (D) Cash $98,000 $83,000 $15,000 (I) Accounts receivable 46,400 51,000 4,600 (D) Inventory 71,000 53,000 18,000 (I) Prepaid rent 2,600 4,200 1,600 (D) Accounts payable 41,000 35,000 6,000 (I) Income tax payable 4,600 8,000 3,400 (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.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 Cash flows from operating activities
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