Refer to the information provided for Peach Computer in E11–11.

Required:

Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method.

E11-11

Transcribed Image Text:

PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $2,050,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $1,150,000 660,000 60,000 50,000 Total expenses 1,920,000 $ 130,000 Net income PEACH COMPUTER Selected Balance Sheet Data December 31 2021 2020 Increase (I) or Decrease (D) Cash $112,000 $90,000 $22,000 (I) Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 46,000 85,000 4,000 55,000 6,000 54,000 60,000 7,000 42,000 15,000 8,000 (D) 25,000 (I) 3,000 (D) 13,000 (I) 9,000 (D)