Prepaid rent 2,700  4,400  1,700 (D)Account s payable 42,000  35,500  6,500 (I)In come tax payable 4,700  8,500  3,800 (D)Requ ired:Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List

Complete Question:

PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net nales $1,725,000 Expenses: Cost of goods sold $1,020,000 Operating expenses 530,000 Depreciation expense 47,000 Income tax expense 37,000 Total expenses 1,634,000 Net Income $ 91,000 PEACH COMPUTER Selected Balance sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 2021 $99,000 46,300 72,000 2,700 42,000 4,700 2020 $83,500 50,500 53,500 4,400 35,500 8,500 Increase (1) or Decrease (D) $15,500 (1) 4,200 (D) 18,500 (1) 1,700 (D) 6,500 (I) 3,800 (D)

Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method.

Peach Computer

Statement of Cash Flows

For the year ended December 31, 2021

Operating Activities:

Operating income    $490,000

Accounts receivable       4,200

Inventory                       (18,500)

Prepaid rent                     1,700

Accounts payable          6,500

Income tax payable      (3,800)

Net operating cash $480,100

Explanation:

a) Data and Calculations:

PEACH COMPUTER

Income Statement

For the year ended December 31, 2021

Net nales                  $1,725,000

Expenses:

Cost of goods sold $1,020,000

Operating expenses   530,000

Operating income    $490,000

Depreciation expense  47,000

Income tax expense     37,000

Total expenses        1,634,000

Net Income                $ 91,000

PEACH COMPUTER

Selected Balance sheet Data

December 31,                 2021       2020    Increase (1) or Decrease (D)

Cash                          $99,000  $83,500    $15,500 (1)

Accounts receivable   46,300    50,500        4,200 (D)

Inventory                     72,000    53,500       18,500 (1)

Prepaid rent                  2,700      4,400          1,700 (D)

Accounts payable      42,000   35,500         6,500 (I)

Income tax payable      4,700     8,500         3,800 (D)

answer; standing committee;

answer; (c) communism and socialism;