Portions of the financial statements for Peach Computer are provided below. PEAC
ID: 2454485 • Letter: P
Question
Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2015
Net sales $1,575,000
Expenses:
Cost of goods sold $960,000
Operating expenses 470,000
Depreciation expense 41,000
Income tax expense 31,000
Total expenses 1,502,000
Net income $ 73,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2015 2014 Increase (I)
or
Decrease (D)
Cash $93,000 $80,500 $12,500 (I)
Accounts receivable 46,900 53,500 6,600 (D)
Inventory 66,000 50,500 15,500 (I)
Prepaid rent 2,100 3,200 1,100 (D)
Accounts payable 36,000 32,500 3,500 (I)
Income tax payable 4,100 5,500 1,400 (D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using theindirect method. (List cash outflows and any decrease in cash as negative amounts.)
noncash activities note.
how would i solve this?
Explanation / Answer
Peach Computer Statement of Cash Flows For the Years Ending December 31, 2015 2015 Cash Flows from Operating Activities Net Income $73,000 Add Non Cash Expenses Depreciation 41000 Other Adjustments: Add Reduction in Accounts Receivable 6600 Add Increase in Accounts Payable 3500 Add Decrease in Prepaid Rent 1100 Subtract Decrease in Income Tax Payable -1400 Subtract Increase in Inventory -15500 Net Cash from Operating Activities $108,300