Prepare the operating section for the statement of cash flows using the Indirect Method Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2018 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,040,000 550,000 49,000 39,000 $1,775,000 Inventory 1,678,000 Prepaid rent $ 97,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Accounts receivable Accounts payable Income tax payable 2018 2017 $101,000 $84,500 46,100 49,500 74,000 54,500 2,900 4,800 44,000 36,500 4,900 9,500
Prepare the operating section for the statement of cash flows using the Indirect Method Net sales Expenses: PEACH COMPUTER Income Statement For the year ended December 31, 2018 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income $1,040,000 550,000 49,000 39,000 $1,775,000 Inventory 1,678,000 Prepaid rent $ 97,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Accounts receivable Accounts payable Income tax payable 2018 2017 $101,000 $84,500 46,100 49,500 74,000 54,500 2,900 4,800 44,000 36,500 4,900 9,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare the operating section for the statement of cash flows using the Indirect Method
Net sales
Expenses:
PEACH COMPUTER
Income Statement
For the year ended December 31, 2018
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
$1,040,000
550,000
49,000
39,000
$1,775,000
Inventory
1,678,000 Prepaid rent
$ 97,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Cash
Accounts receivable
Accounts payable
Income tax payable
2018
2017
$101,000 $84,500
46,100 49,500
74,000 54,500
2,900 4,800
44,000 36,500
4,900
9,500
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