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

PEACH COMPUTER Income Statement For the year ended December 31, 2015

Net sales

$2,050,000

Expenses:

Cost of goods sold

$1,150,000

Operating expenses

660,000

Depreciation expense

60,000

Income tax expense

50,000

Total expenses

1,920,000

Net income

$ 130,000

PEACH COMPUTER Selected Balance Sheet Data December 31
	2015	2014	Increase (I) or Decrease (D)
Cash	$112,000	$90,000	$22,000	(I)
Accounts receivable	46,000	54,000	8,000	(D)
Inventory	85,000	60,000	25,000	(I)
Prepaid rent	4,000	7,000	3,000	(D)
Accounts payable	55,000	42,000	13,000	(I)
Income tax payable	6,000	15,000	9,000	(D)

PEACH COMPUTER
Statement of Cash Flows (partial)
For the Year Ended December 31, 2015
Cash flows from operating activities:
Adjustments to reconcile net income to net cash flows from operating activities
Net cash flows from operating activities		$0