Answer:
PEACH COMPUTER
PEACH COMPUTER
Statement of Cash Flows for the year ended December 31, 2021
(Operating Activities only)
Net income $ 103,000
Depreciation expense 51,000
Changes in working capital:
Accounts receivable 4,400
Inventory -20,500
Prepaid rent 2,100
Accounts payable 8,500
Income tax payable -5,400
Net cash flows from
operating activities $143,100
Explanation:
a) Data and Calculations:
Sales revenue $1,825,000
Expenses: Cost of goods sold $ 1,060,000
Operating expenses 570,000
Depreciation expense 51,000
Income tax expense 41,000
Total expenses 1,722,000
Net income $ 103,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31 2021 2020
2021 2020 Increase (I) or Decrease (D)
Cash $ 103,000 $ 85,500 $ 17,500 (I)
Accounts receivable 45,100 49,500 4,400 (D)
Inventory 76,000 55,500 20,500 (I)
Prepaid rent 3,100 5,200 2,100 (D)
Accounts payable 46,000 37,500 8,500 (I)
Income tax payable 5,100 10,500 5,400 (D)
