Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers. PEACH

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers.

PEACH COMPUTERS Income Statement For the Year Ended December 31, 2018
Sales $ 440.0
Cost of goods sold (220.0 )
Gross margin 220.0
Salaries expense $ 51.0
Insurance expense 28.0
Depreciation expense 13.0
Loss on sale of land 11.0 103.0
Income before tax 117.0
Income tax expense (58.5 )
Net income $ 58.5

Reconciliation of Net Income To Net Cash Flows from Operating Activities
Net income $ 58.5
Adjustments for Noncash Effects
Depreciation expense 13.0
Loss on sale of land 11.0
Changes in operating assets and liabilities:
Decrease in accounts receivable 15.0
Increase in inventory (58.0 )
Decrease in accounts payable (35.0 )
Increase in salaries payable 23.0
Decrease in prepaid insurance 13.5
Increase in income tax payable 54.7
Net cash flows from operating activities $ 95.7

Required: 1. Calculate each of the following amounts for Peach Computers: 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method).

a. Cash received from customers during the reporting period.
b. Cash paid to suppliers of goods during the reporting period.
c. Cash paid to employees during the reporting period.
d. Cash paid for insurance during the reporting period.
e. Cash paid for income taxes during the reporting period.

Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.)

Cash Flows from Operating Activities:
Net cash flows from operating activities $0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing An Introduction With Suggested Answers To Discussion Questions

Authors: Darwin J. Casler

1st Edition

0894130978, 978-0894130977

More Books

Students also viewed these Accounting questions