Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $1,625,000 Expenses Cost of goods sold $980,000 490,000 43,000 Operating expenses Depreciation expense Income tax expense 33,000 Total expenses 1,546,000 Net income %24 79,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 $95,000 46,700 68,000 2,300 38,000 4,300 2020 Decrease (D) $13,500 (I) 5,800 (D) 16,500 Cash Accounta receivable Inventory Prepaid rent Accounts payable Income tax payable $81,500 52,500 51,500 3,600 33,500 6,500 (1) 1,300 (D) 4,500 (1) 2,200 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the outflows and any decrease in cash as negative amounts.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2021
Net sales
$1,625,000
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
$980,000
490,000
43,000
Income tax expense
33,000
Total expenses
1,546,000
Net income
79,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Increase (I)
or
2021
$95,000
46,700
68,000
2,300
38,000
4,300
2020
Decrease (D)
$13,500 (I)
5,800 (D)
16,500
Cash
$81, 500
52,500
Accounta receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
51,500
3,600
33,500
6,500
(I)
1,300 (D)
4,500 (I)
2,200 (D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect 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:
Net income
43,000
Adjustments to reconcile net income to net
cash flows from operating activities:
Decrease in accounts receivable
5,800
Decrease in prepaid rent
1,300
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 $1,625,000 Expenses: Cost of goods sold Operating expenses Depreciation expense $980,000 490,000 43,000 Income tax expense 33,000 Total expenses 1,546,000 Net income 79,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 $95,000 46,700 68,000 2,300 38,000 4,300 2020 Decrease (D) $13,500 (I) 5,800 (D) 16,500 Cash $81, 500 52,500 Accounta receivable Inventory Prepaid rent Accounts payable Income tax payable 51,500 3,600 33,500 6,500 (I) 1,300 (D) 4,500 (I) 2,200 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect 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: Net income 43,000 Adjustments to reconcile net income to net cash flows from operating activities: Decrease in accounts receivable 5,800 Decrease in prepaid rent 1,300
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Increase (I)
or
2021
Decrease (D)
$13,500 (I)
5,800 (D)
16,500 (I)
1,300
4,500
2,200 (D)
2020
Cash
$95,000
46,700
$81,500
52,500
51,500
3,600
33,500
6,500
Accounts receivable
Inventory
Prepaid rent
Accounts payable
Income tax payable
68,000
2,300
(D)
38,000
4,300
(I)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Com
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:
Net income
24
43,000
Adjustments to reconcile net income to net
cash flows from operating activities:
Decrease in accounts receivable
5,800
Decrease in prepaid rent
1,300
(16,500)
4,500
(2,200)
Increase in inventory
Increase in accounts payable
Decrease in income tax payable
Net cash flows from operating activities
35,900
Transcribed Image Text:PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or 2021 Decrease (D) $13,500 (I) 5,800 (D) 16,500 (I) 1,300 4,500 2,200 (D) 2020 Cash $95,000 46,700 $81,500 52,500 51,500 3,600 33,500 6,500 Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 68,000 2,300 (D) 38,000 4,300 (I) Required: Prepare the operating activities section of the statement of cash flows for Peach Com 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: Net income 24 43,000 Adjustments to reconcile net income to net cash flows from operating activities: Decrease in accounts receivable 5,800 Decrease in prepaid rent 1,300 (16,500) 4,500 (2,200) Increase in inventory Increase in accounts payable Decrease in income tax payable Net cash flows from operating activities 35,900
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education