Portions of the financial statements for Peach Computer are provided below. ...
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Accounting
Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Net sales
$1,650,000
Expenses:
Cost of goods sold
$990,000
Operating expenses
500,000
Depreciation expense
44,000
Income tax expense
34,000
Total expenses
1,568,000
Net income
$82,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2024
2023
Increase (I) or Decrease (D)
Cash
$96,000
$82,000
$14,000
(I)
Accounts receivable
46,600
52,000
5,400
(D)
Inventory
69,000
52,000
17,000
(I)
Prepaid rent
2,400
3,800
1,400
(D)
Accounts payable
39,000
34,000
5,000
(I)
Income tax payable
4,400
7,000
2,600
(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
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