Exercise 11-9 (Algo) Calculate operating activitiesindirect method (LO11-3) Portions of the financial statements for Peach...
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Exercise 11-9 (Algo) Calculate operating activitiesindirect method (LO11-3)
Portions of the financial statements for Peach Computer are provided below.
| PEACH COMPUTER | ||
| Income Statement | ||
| For the year ended December 31, 2024 | ||
| Net sales | $1,800,000 | |
|---|---|---|
| Expenses: | ||
| Cost of goods sold | $1,050,000 | |
| Operating expenses | 560,000 | |
| Depreciation expense | 50,000 | |
| Income tax expense | 40,000 | |
| Total expenses | 1,700,000 | |
| Net income | $100,000 | |
| PEACH COMPUTER | ||||
| Selected Balance Sheet Data | ||||
| December 31 | ||||
| 2024 | 2023 | Increase (I) or Decrease (D) | ||
|---|---|---|---|---|
| Cash | $102,000 | $85,000 | $17,000 | (I) |
| Accounts receivable | 45,000 | 49,000 | 4,000 | (D) |
| Inventory | 75,000 | 55,000 | 20,000 | (I) |
| Prepaid rent | 3,000 | 5,000 | 2,000 | (D) |
| Accounts payable | 45,000 | 37,000 | 8,000 | (I) |
| Income tax payable | 5,000 | 10,000 | 5,000 | (D) |
Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
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