Question 8

OC Portions of the financial statements for Peach Computer are provided below. 4 nts PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,625,000 Expenses: Cost of goods sold $980,000 Operating expenses 490,000 Depreciation expense 43,000 Income tax expense 33,000 eBook Hint Total expenses 1,546,000 Print Net income $ 79,000 References PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (0) or 2018 2017 Decrease (D) $95,000 $81,500 Cash $13,500 (0) Accounts receivable 46,700 52,500 5,800 (D) Inventory 68,000 51,500 16,500 (1) Prepaid rent 2,300 3,600 1,300 (D) Accounts payable 38,000 33,500 4,500 (0) Income tax payable 4,300 6,500 2,200 (D) MC Gram Hint 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.) Print References PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash flows from operating activities: Not cash flows from operating activities