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 thousands) for Peach Computers.

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 $ 335.0 (134.0) Sales Cost of goods sold Gross margin Salaries expense 201.0 $37.0 Insurance expense 14.0 Depreciation expense Loss on sale of land 6.0 4.0 61.0 Income before tax 140.0 Income tax expense (70.0) Net income 70.0 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 70.0 Adjustments for Noncash Effects Depreciation expense Loss on sale of land 6.0 4.0 Changes in operating assets and liabilities: Decrease in accounts receivable 8.0 Increase in inventory Decrease in accounts payable Increase in salaries payable (23.0) (14.0) 9.0 Decrease in prepaid insurance Increase in income tax payable 10.0 67.6 Net cash flows from operating activities $137.6 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. Required 1 Required 2 Calculate each of the following amounts for Peach Computers. (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Cash outflows must be indicated with a minus sign.) Cash received from customers during the reporting period. . b. Cash paid to suppliers of goods during the reporting period. . Cash paid to employees during the reporting period. d. Cash paid for insurance during the reporting period. . Cash paid for income taxes during the reporting period. Required 1 Required 2 Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter you in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should b with a minus sign.) Cash Flows from Operating Activities: Net cash flows from operating activities

Step by Step Solution

3.37 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

Answer 1 in thousands a Cash received from customers during the reporting peri... 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

Step: 3

blur-text-image

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students also viewed these Accounting questions

Question

Find the investors expected profit.

Answered: 1 week ago

Question

Add 0 1 0 1 to 0 1 1 0 in binary.

Answered: 1 week ago