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 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $1,100,000 610,000 55,000 45,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2024 $107,000 45,500 80,000 3,500 50,000 5,500 2023 $87,500 51,500 57,500 6,000 39,500 12,500 $1,925,000 1,810,000 $115,000 Increase (I) or Decrease (D) $19,500 (I) 6,000 (D) 22,500 (I) 2,500 10,500 7,000 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 Net income Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in income tax payable Net cash flows from operating activities $ 1,931,000 (1,112,000) (610,000) 209,000 2,500 10,500 $ 431,000
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 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $1,100,000 610,000 55,000 45,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2024 $107,000 45,500 80,000 3,500 50,000 5,500 2023 $87,500 51,500 57,500 6,000 39,500 12,500 $1,925,000 1,810,000 $115,000 Increase (I) or Decrease (D) $19,500 (I) 6,000 (D) 22,500 (I) 2,500 10,500 7,000 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 Net income Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in income tax payable Net cash flows from operating activities $ 1,931,000 (1,112,000) (610,000) 209,000 2,500 10,500 $ 431,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Cash
Accounts receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
$1,100,000
610,000
55,000
45,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2024
$107,000
45,500
80,000
3,500
50,000
5,500
2023
$87,500
51,500
57,500
6,000
39,500
12,500
$1,925,000
1,810,000
$115,000
Increase (I) or
Decrease (D)
$19,500
(I)
6,000 (D)
22,500 (I)
2,500
10,500
7,000
Transcribed Image Text: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
Net income
Depreciation expense
Decrease in accounts receivable
Increase in inventory
Decrease in prepaid rent
Decrease in income tax payable
Net cash flows from operating activities
$
1,931,000
(1,112,000)
(610,000)
209,000
2,500
10,500
$
431,000
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