Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Net sales
$1,800,000
Expenses:
Cost of goods sold
$1,050,000
Operating expenses
560,000
Depreciation expense
50,000
Income tax expense
40,000
Total expenses
1,700,000
Net income
$100,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2024
2023
Increase (I) or Decrease (D)
Cash
$102,000
$85,000
$17,000
(I)
Accounts receivable
45,000
49,000
4,000
(D)
Inventory
75,000
55,000
20,000
(I)
Prepaid rent
3,000
5,000
2,000
(D)
Accounts payable
45,000
37,000
8,000
(I)
Income tax payable
5,000
10,000
5,000
(D)
Required: 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 $ 0
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