Question

Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $1,675,000 Expenses: Cost of goods sold $1,000,000 Operating expenses 510,000 Depreciation expense 45,000 Income tax expense 35,000 Total expenses 1,590,000 Net income $ 85,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 2021 $97,000 46,500 70,000 2,500 40,000 4,500 $82,500 51,500 52,500 4,000 34,500 7,500 Increase (I) or Decrease (D) $14,500 5,000 (D) 17,500 (1) 1,580 (D) 5,500 (1) 3,020 (D)

Answer 1

85000 45000 PEACH COMPUTERS statement of cash flows (partial) for the year end december 31 2021 cash from operating activities net income adjustments to net income to cash provided by operating activities add depreciation expense changes in current assets and liabilities add accounts receivable less inventory add prepaid rent add accounts payable less income tax payable total adjustments to the net income net cash flows provided by operating activities 5000 -17500 15000 5500 -3000 50000 135000