Question

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, 2018 Sales $ 305 Cost of goods sold (185) Gross margin Salaries expense Insurance expense Depreciation expense Loss on sale of land Income before tax Income tax expense Net Income $41 Reconciliation of Net Income To Net Cash Flows from Operating Motivities Net income Adjustments for Noncash Effects Depreciation expense Loss on sale of land Changes in operating assets and liabilities: Decrease in accounts receivable Therease in inventory Decrease in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable Net cash flove from operating activities 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 (1.0, 5.000 should be entered as 5). Cash outflows must be indicated with a minus sign.) a b. Cash received from customers during the reporting period Chith paid to suppliers of goods during the reporting period Cash paid to employees during the reporting period Cash paid for insurance during the reporting period Cash paid for income taxes during the reporting period d. e. Required 2 >

Answer 1

(1)

a	Cash received from customers during the reporting period ($305{Sale} + $6{decrease in acc receivable)	$311
b	Cash paid to suppliers of the goods ($185{COGS} + $13{increase in inventory} + $8{decrease in acc payable})	$206
c	Cash paid to employees ($41{salary} - $5{increase in salary payable})	$36
d	Cash paid for insurance ($19 - $9{decrease in prepaid insurance})	$10
e	Cash paid for income tax ($22 - $20{Increase in income tax payable})	$2

(2)

Cash received from customers during the reporting period	$311
Cash paid to suppliers of the goods	($206)
Cash paid to employees	($36)
Cash paid for insurance	($10)
Cash paid for income tax	($2)
Cash flow from operating activities	$57