Portions of the financial statements for Peach Computer are provided below PEACH

Question

Portions of the financial statements for Peach Computer are provided below PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales Expenses $1,825,000 Cost of goods sold Operating expenses Depreciation expense Income tax expense 1,060,000 570,000 51,000 41.000 Total expenses 1,722,000 Net income S 103,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (l) or 2018 2017 Decrease (D) Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $103,000 $85,500 $17,500 (I) 76,000 55,500 20,500 (I) 8,500 () 4,400 (D) 2,100 (D) 5,400 (D) 45,100 49,500 3,100 5,200 46.000 37,500 5.100 10.500 Required Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash flows from operating activities Cash paid for operating expenses Cash received from customers Cash paid for income taxes Cash paid to suppliers 1,829,400 (46,400) Net cash flows from operating activities S 1,783,000 Hints References eBook & Resources Hint #1

Explanation / Answer

Cash flow from operating activities direct method

(46400)

Cash received from customer (1825000+4400) 1829400 Cash paid to supplier (1060000+20500-8500) (1072000) Cash paid for expenses (570000-2100) (567900) Cash paid for income tax (41000+5400)

(46400)

Net cash flow from operating activities 143100

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