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Portions of the financial statements for Peach Computer are provided below. ...

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Accounting

Portions of the financial statements for Peach Computer are provided below.

PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Net sales $1,950,000
Expenses:
Cost of goods sold $1,110,000
Operating expenses 620,000
Depreciation expense 56,000
Income tax expense 46,000
Total expenses 1,832,000
Net income $118,000

PEACH COMPUTER
Selected Balance Sheet Data
December 31
2024 2023 Increase (I) or Decrease (D)
Cash $108,000 $88,000 $20,000 (I)
Accounts receivable 45,600 52,000 6,400 (D)
Inventory 81,000 58,000 23,000 (I)
Prepaid rent 3,600 6,200 2,600 (D)
Accounts payable 51,000 40,000 11,000 (I)
Income tax payable 5,600 13,000 7,400 (D)

Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

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PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities & & \\ \hline & & \\ \hline Net cash flows from operating activities & & \\ \hline \end{tabular}

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