Exercise 11-11A Calculate operating activities-indirect method (LO11-3) Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 $1,825,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense $1,060,000 570,000 51,000 41,000 Income tax expense Total expenses 1,722,000 $ 103,000 Net income PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (I) or Decrease (D) $17,500 (I) (D) 2021 2020 $103,000 45,100 76,000 3,100 46,000 5,100 $85,500 49,500 55,500 5,200 37,500 10,500 Cash Accounts receivable 4,400 (I) 20,500 2,100 Inventory Prepaid rent Accounts payable Income tax payable (D) 8,500 (I) 5,400 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities $ 0
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