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 $2,000,000
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2015 Net sales $2,000,000 Expenses: Cost of goods sold $1,130,000 Operating expenses 640,000 Depreciation expense 58,000 Income tax expense 48,000 Total expenses 1,876,000 Net income $ 124,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2015 2014 Increase (I) or Decrease (D) Cash $110,000 $89,000 $21,000 (I) Accounts receivable 45,800 53,000 7,200 (D) Inventory 83,000 59,000 24,000 (I) Prepaid rent 3,800 6,600 2,800 (D) Accounts payable 53,000 41,000 12,000 (I) Income tax payable 5,800 14,000 8,200 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
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