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Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,875,000
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,875,000 Expenses: Cost of goods sold $1,080,000 Operating expenses 590,000 Depreciation expense 53,000 Income tax expense 43,000 Total expenses 1,766,000 Net income $ 109,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (1) or 2018 2017 $105,000$86,500 Cash Accounts receivable 45,300 50,500 Inventory 78,000 56,500 Prepaid rent 3,300 5,600 Accounts payable 48,000 38,500 Income tax payable 5,300 11,500 Decrease (D) $18,500 (0) 5,200 (D) 21,500 (0) 2,300 (D) 9,500 (0) 6,200 (D) 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: 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: Net income 100,000 Depreciation expense 50,000 Decrease in accounts receivable 4,000 Increase in inventory Net cash flows from operating activities $ 154,000
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