Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 21-21 (Algo) Cash flows from operating activities (direct method) derived from an inca statement; cash flows from operating activities (indirect method) [LO21-3, 21-4) The

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 21-21 (Algo) Cash flows from operating activities (direct method) derived from an inca statement; cash flows from operating activities (indirect method) [LO21-3, 21-4) The income statement and a schedule reconciling cash flows from operating activities to net income are provided below thousands) for Peach Computers. IN PEACH COMPUTERS Income Statement For the Year Ended December 31, 2021 Sales $ 485. Cost of goods sold (194.0) Gross margin 291.0 Salaries expense $57.0 Insurance expense 34. Depreciation expense 16.0 Loss on sale of land 14.0 121. Income before tax 170. Income tax expense (85.) Net income $ 85.0 $ 85.0 16. 14.9 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income Adjustments for Noncash Effects Depreciation expense Loss on sale of land Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable Net cash flows from operating activities 18. (73.0) (44.) 29.0 15. 80.6 $140.6 Required: 1. Calculate each of the following amounts for Peach Computers. 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method) Required 1 Required 2 Calculate each of the following amounts for Peach Computers. (Enter your answers in thousands rounded to 1 decimal place (1.e., 5,500 should be entered as 5.5). Cash outflows must be indicated with a minus sign.) a b Cash received from customers during the reporting period Cash paid to suppliers of goods during the reporting period, Cash paid to employees during the reporting period Cash paid for insurance during the reporting period Cash paid for income taxes during the reporting period. d Required 2 > Required 1 Required 2 Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities Net cash flows from operating activities $ 0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Beyond Compliance Design Of A Quality System Tools And Templates For Integrating Auditing Perspectives

Authors: Janet Bautista Smith, Robert Alvarez

1st Edition

1951058232, 978-1951058234

More Books

Students also viewed these Accounting questions