Answer:
<u>operating activities section </u>
Cash Receipts from Customers $1,644,600
Cash Paid to Suppliers and Employees ($1,500,600)
Cash Generated from Operations $164,000
Income taxes paid ($36,600)
Net Cash from Operating Activity $127,400
Explanation:
statement of cash flows for Peach Computer
<u>operating activities section </u>
Cash Receipts from Customers $1,644,600
Cash Paid to Suppliers and Employees ($1,500,600)
Cash Generated from Operations $164,000
Income taxes paid ($36,600)
Net Cash from Operating Activity $127,400
<em>Cash Receipts from Customers Calculation :</em>
Net sales $1,650,000
Less Increase In Account Receivable ( $ 5,400)
Cash Receipts from Customers $1,644,600
<em>Cash Paid to Suppliers and Employees Calculation :</em>
Cost of goods sold $990,000
Add Operating expenses $500,000
Increase in inventory $17,000
Decrease in Prepaid rent ($1,400)
Increase in Accounts payable ($5,000)
Cash Paid to Suppliers and Employees $1,500,600
<em>Income tax expense Paid Calculation :</em>
Income tax expense $34,000
Add Decrease in Income tax payable $2,600
Income tax expense Paid $36,600
