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 $1,650,000 $990,000 500,000 44,000 34,000 1,568,000 $82,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Required: PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2824 $96,000 2023 Decrease (D) $82,000 $14,000 (I) 46,600 52,000 5,400 (D) 69,000 52,000 17,000 (I) 2,400 3,800 1,400 (D) 39,000 34,000 5,000 (I) 4,400 7,000 2,600 (D) 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.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
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 $1,650,000 $990,000 500,000 44,000 34,000 1,568,000 $82,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Required: PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2824 $96,000 2023 Decrease (D) $82,000 $14,000 (I) 46,600 52,000 5,400 (D) 69,000 52,000 17,000 (I) 2,400 3,800 1,400 (D) 39,000 34,000 5,000 (I) 4,400 7,000 2,600 (D) 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.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities
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.
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
$1,650,000
$990,000
500,000
44,000
34,000
1,568,000
$82,000
Cash
Accounts receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
Required:
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Increase (I) or
2824
$96,000
2023
Decrease (D)
$82,000
$14,000 (I)
46,600
52,000
5,400 (D)
69,000
52,000
17,000 (I)
2,400
3,800
1,400 (D)
39,000
34,000
5,000 (I)
4,400
7,000
2,600
(D)
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.)
PEACH COMPUTER
Statement of Cash Flows (partial)
For the Year Ended December 31, 2024
Cash flows from operating activities:
Adjustments to reconcile net income to net cash
flows from operating activities:
Net cash flows from operating activities
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