Refer to the information provided for Peach Computer in E11€“11.
In E11€“11, Portions of the financial statements for Peach Computer are provided below.

Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the directmethod.

Transcribed Image Text:

PEACH COMPUTER Income Statement For the year ended December 31, 2015 Net sales $2,050,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $1,150,000 660,000 60,000 50,000 1,920,000 130,000 Net income PEACH COMPUTER December 31 2015 Selected Balance Sheet Data 2014 Increase (I) or Decrease (D) $22,000 () 8,000 (D) 25,000 () 3,000 (D) 13,000 () 9,000 (D) Cash $112,000 $90,000 46,000 54,000 85,000 60,000 4,000 Prepaid rent Accounts payable Income tax payable 55,00042,000 6,000 15,000