80.2K

Verified Solution

Link Copied!

Exercise 21-21 Cash flows from operating activities (direct method) derived from an income statement; cash flows from operating activities (indirect method) [LO21-3, 21-4] The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers.

Exercise 21-21 Cash flows from operating activities (direct method) derived from an income statement; cash flows from operating activities (indirect method) (LO21-3, 21-4) points The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers. mo eBook Print PEACH COMPUTERS Income Statement For the Year Ended December 31, 2018 Sales $ 485.0 Cost of goods sold (194.0) Gross margin 291.0 Salaries expense $57.0 Insurance expense 34.0 Depreciation expense 16.0 Loss on sale of land 14.0 121.0 Income before tax 170.0 Income tax expense (85.0) Net income $ 85.0 References Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 85.0 Adjustments for Noncash Effects Depreciation expense 16.0 Loss on sale of land 14.0 Changes in operating assets and liabilities: Decrease in accounts receivable 18.0 Increase in inventory (73.0) Decrease in accounts payable (44.0) Increase in salaries payable 29.0 Decrease in prepaid insurance 15.0 Increase in income tax payable 80.6 Net cash flows from operating activities $140.6 Required: 1. Calculate each of the following amounts for Peach Computers: 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method). Required: 1. Calculate each of the following amounts for Peach Computers: 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate each of the following amounts for Peach Computers: (Enter your answers in thousands rounded to 1 decimal place (1.e., 5,500 should be entered as 5.5). Cash outflows must be indicated with a minus sign.) a. b. C. d. e. Cash received from customers during the reporting period. Cash paid to suppliers of goods during the reporting period. Cash paid to employees during the reporting period. Cash paid for insurance during the reporting period. Cash paid for income taxes during the reporting period. 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Net cash flows from operating activities $ 0.0

Answer & Explanation Solved by verified expert

See Answer