Question

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,650,000 Expenses: Cost of goods sold $990,000 Operating expenses 500,000 Depreciation expense 44,000 Income tax expense 34,000 Total expenses 1,568,000 Net income $ 82,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (1) or Cash Accounts receivable 2018 $96,000 46,600 69,000 2,400 39,000 4,400 2017 $82,000 52,000 52.000 3,800 34.000 7.000 Decrease (D) $14,000 () 5,400 (D) 17,000 (1) 1,400 (D) 5,000 2.600 (D) Prepaid rent Accounts payable Income tax payable

Answer 1

Statement of Cash Flows
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Cash flows from operating activities	AMOUNT	AMOUNT
Cash receipts from customers	$   16,55,400
Cash paid to suppliers	$ -10,02,000
Cash paid for other Operating expenses	$    -4,98,600
Income taxes paid	$       -36,600
Net cash from operating activities		$     1,18,200
Working notes: 1
Calculation of cash collection from customer
Sales	$       16,50,000
Add: Opening AR	$             52,000
Less: Closing AR	$             46,600
Cash Collected	$       16,55,400
Working notes: 2
Calculation of purhcase of inventory
Cost of Goods Sold	$          9,90,000
Add: Closing inventory	$             69,000
Less : Opening Inventory	$             52,000
Material Purhcased	$       10,07,000
Calculation of amount paid to supplied
Op. Balance of Acct Payabl e	$             34,000
Add: Purchases	$       10,07,000
Less: Cl. Balance of Account payable	$             39,000
Cash paid	$       10,02,000
Working notes: 3
Operating expenses
As per income statemnt	$          5,00,000
Add: Closing Prpaid balance	$                2,400
Less : Beginning prepaid balance	$                3,800
	$          4,98,600
Working notes: 4
Income tax
As per income statemnt	$             34,000
Add: Beginning Balance	$                7,000
Less : Closing Balance	$                4,400
Cash paid	$             36,600