Peach, Inc. Comparative Balance Sheets 12/31/year2 12/31/year1 Cash $ 23,000 $ 17,000 Accounts Receivable 13,000 9,000 Prepaid
Question:
Peach, Inc. Comparative Balance Sheets
12/31/year2 12/31/year1
Cash $ 23,000 $ 17,000
Accounts Receivable 13,000 9,000
Prepaid Insurance 9,000 11,000
Inventory 15,000 17,000
Property, plant, and equipment 23,000 17,000
Accumulated depreciation (6,000) (4,000)
Total Assets $ 77,000 $ 67,000
Accounts Payable $ 21,000 $ 17,000
Operating Expenses Payable 15,000 17,000
Long-term Notes Payable 11,000 13,000
Common Stock 19,000 13,000
Retained Earnings 11,000 7,000
Total Liabilities & Equity $ 77,000 $ 67,000
Income Statement Year 2
Revenue $ 80,000
Cost of goods sold 41,000
Gross Margin 39,000
Depreciation expense 2,000
Other operating expense 19,000
Net Income $ 18,000
REQUIRED:
1. Calculate the cash flow from operating activities (using the indirect method).
2. Calculate the cash flow from investing activities.
3. Calculate the cash flow from financing activities.
Expert Answer:
SOLUTION 1 To calculate the cash flow from operating activities using the indirect method we start w... View the full answer
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
