Question: E12-21 (Static) (Supplement A) Reporting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method) The following information pertains to Peak Heights Company: Income

E12-21 (Static) (Supplement A) Reporting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method) The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 93,000 Expenses Cost of goods sold $ 51,875 Depreciation expense 6,000 Salaries expense 12,000 69,875 Net income $ 23,125 Partial Balance Sheet Current year Prior year Accounts receivable $ 10,500 $ 12,000 Inventory 13,000 8,000 Salaries payable 2,250 800 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the direct method. All inventory purchases are paid with cash, and the balance in accounts payable is zero for both the current and prior years. Note: List cash outflows as negative amounts. calculate a. cash collected from customers,b. cash payments to suppliers of inventory, c. cash payment to employees

Question: E12-21 (Static) (Supplement A) Reporting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method) The following information pertains to Peak Heights Company: Income

Step by Step Solution

Students Have Also Explored These Related Accounting Questions!