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Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,850,000 $1,070,000 580,000 52,000 42,000 1,744,000 $ 106,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 Cash $104,000 Accounts receivable 45,200 2020 $86,000 50,000 Decrease (D) $18,000 (1) 4,800 (D) Inventory 77,000 56,000 21,000 (I) Prepaid rent 3,200 5,400 2,200 (D) Accounts payable 47,000 38,000 9,000 (I) Income tax payable 5,200 11,000 5,800 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes $ 1,854,800 Net cash flows from operating activities $ 1,854,800

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,850,000 $1,070,000 580,000 52,000 42,000 1,744,000 $ 106,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 Cash $104,000 Accounts receivable 45,200 2020 $86,000 50,000 Decrease (D) $18,000 (1) 4,800 (D) Inventory 77,000 56,000 21,000 (I) Prepaid rent 3,200 5,400 2,200 (D) Accounts payable 47,000 38,000 9,000 (I) Income tax payable 5,200 11,000 5,800 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes $ 1,854,800 Net cash flows from operating activities $ 1,854,800

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,850,000 $1,070,000 580,000 52,000 42,000 1,744,000 $ 106,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 Cash $104,000 Accounts receivable 45,200 2020 $86,000 50,000 Decrease (D) $18,000 (1) 4,800 (D) Inventory 77,000 56,000 21,000 (I) Prepaid rent 3,200 5,400 2,200 (D) Accounts payable 47,000 38,000 9,000 (I) Income tax payable 5,200 11,000 5,800 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes $ 1,854,800 Net cash flows from operating activities $ 1,854,800
Transcribed Image Text:Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,850,000 $1,070,000 580,000 52,000 42,000 1,744,000 $ 106,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 Cash $104,000 Accounts receivable 45,200 2020 $86,000 50,000 Decrease (D) $18,000 (1) 4,800 (D) Inventory 77,000 56,000 21,000 (I) Prepaid rent 3,200 5,400 2,200 (D) Accounts payable 47,000 38,000 9,000 (I) Income tax payable 5,200 11,000 5,800 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Cash received from customers Cash paid to suppliers Cash paid for operating expenses Cash paid for income taxes $ 1,854,800 Net cash flows from operating activities $ 1,854,800
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