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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, 2018 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,100,000 610,000 55,000 45,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $1,925,000 1,810,000 PEACH COMPUTER Selected Balance Sheet Data December 31 $ 115,000 2018 2017 Decrease (D) $107,000 $87,500 45,500 51,500 80,000 57,500 3,500 6,000 50,000 39,500 5,500 12,500 PEACH COMPUTER Increase (1) or $19,500 (1) 6,000 (D) 22,500 (1) 2,500 (D) 10,500 (1) 7,000 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows as negative amounts.)

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,100,000 610,000 55,000 45,000 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $1,925,000 1,810,000 PEACH COMPUTER Selected Balance Sheet Data December 31 $ 115,000 2018 2017 Decrease (D) $107,000 $87,500 45,500 51,500 80,000 57,500 3,500 6,000 50,000 39,500 5,500 12,500 PEACH COMPUTER Increase (1) or $19,500 (1) 6,000 (D) 22,500 (1) 2,500 (D) 10,500 (1) 7,000 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows as negative amounts.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 2018 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,100,000 610,000 55,000 45,000 $1,925,000 1,810,000 PEACH COMPUTER Selected Balance Sheet Data December 31 $ 115,000 2018 2017 Decrease (D) $107,000 $87,500 Cash 45,500 51,500 Accounts receivable Inventory Prepaid rent 80,000 57,500 3,500 6,000 Accounts payable 50,000 39,500 Income tax payable 5,500 12,500 Cash flows from operating activities: Net cash flows from operating activities Increase (1) or Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows as negative amounts.) $19,500 (1) 6,000 (D) 22,500 (1) 2,500 (D) 10,500 (1) 7,000 (D) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2018 $ 0
Transcribed Image Text:Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,100,000 610,000 55,000 45,000 $1,925,000 1,810,000 PEACH COMPUTER Selected Balance Sheet Data December 31 $ 115,000 2018 2017 Decrease (D) $107,000 $87,500 Cash 45,500 51,500 Accounts receivable Inventory Prepaid rent 80,000 57,500 3,500 6,000 Accounts payable 50,000 39,500 Income tax payable 5,500 12,500 Cash flows from operating activities: Net cash flows from operating activities Increase (1) or Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows as negative amounts.) $19,500 (1) 6,000 (D) 22,500 (1) 2,500 (D) 10,500 (1) 7,000 (D) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2018 $ 0
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