Question

1.
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $1,775,000 Expenses: Cost of goods sold $1,040,000 Operating expenses 550,000 Depreciation expense 49,000 Income tax expense 39,000 Total expenses 1,678,000 Net income $ 97,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 2021 $ 101,000 46,100 74,000 2,900 44,000 4,900 2020 $84,500 49,500 54,500 4,800 36,500 9,500 Decrease (D) $16,500 (I) 3,400 (D) 19,500 (I) 1,900 (D) 7,500 (I) 4,600 (D)
2.

Answer 1

$97,000 Ans: 0 PEACH COMPUTER Statement of cash flows (Partial) for the Year Ended December 31, 2021 Cash flow from operating Activities Net Income Adjustments to reconcille net Income to net ash Hows from operating Activities & Depreciation Expense $49,000 Decrease in Accounts receivable Increase in Inventory Decrease in prepaid sent $1900 Increase in Accounts payable $7500 Decrease in Income Tax payable ($4600) I Net Cash flow from operating Activities $3400 ($19,500) $37,700 $134,700 ® is Return on Assets & Net Income Average total Assets S $6430__ [422,748 + $ 31,497)/2 8 23.69% OR 23.7% de (11) Cash return on Assets & operating Cash How Average total Assets g $9307 $ 97,132.5 & [ 34.30%)

(i) Cash flow to Sales & opemeting Cash flows Net Sales $ 9307 $28,75) 40.99% A Assets Turnover & op Net Sales Average total Assets $22,751 $27, 132.5 0.83 times op
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