Question 7

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,900,000 Expenses: Cost of goods sold $1,090,000 Operating expenses 600,000 Depreciation expense 54,000 Income tax expense 44,000 Dok int Total expenses 1,788,000 Net income rint $ 112,000 rences PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (1) or 2018 2017 Decrease (D) $106,000 $87,000 $19,000 (1) Cash Accounts receivable 45,400 51,000 5,600 (D) Inventory 79,000 57,000 22,000 (0) Prepaid rent 3,400 5,800 2,400 (D) Accounts payable 49,000 39,000 10,000 (0) Income tax payable 5,400 12,000 6,600 (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.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash flows from operating activities: ces Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities