Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers. PEACH
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers. PEACH COMPUTERS Income Statement For the Year Ended December 31, 2021 Sales $ 590.0 Cost of goods sold (354.0) Gross margin 236.0 Salaries expense $71.0 Insurance expense 48.0 Depreciation expense 23.0 Loss on sale of land 21.0 163.0 Income before tax 73.0 Income tax expense (36.5) Net income $ 36.5 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 36.5 Adjustments for Noncash Effects Depreciation expense 23.0 Loss on sale of land 21.0 Changes in operating assets and liabilities: Decrease in accounts receivable 25.0 Increase in inventory (108.0) Decrease in accounts payable (65.0) Increase in salaries payable 43.0 Decrease in prepaid insurance 18.5 Increase in income tax payable 30.7 Net cash flows from operating activities $ 24.7 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). Complete this question by entering your answers in the tabs below
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started