Financial accounting question Portions of the financial stat

Financial accounting question:

Portions of the financial statements for Peach Computer are provided below PEACH COMPUTER Income Statement For the year ended December 31, 2018 $1,975,000 Net sales Expenses Cost of goods sold Operating expenses Depreciation expense Income tax expense $1,120,000 630,000 57,000 47,000 Total expenses 1,854,000 Net income $ 121,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (1) or 2017 Decrease (D) $20,500 (I) 6,800 (D) 23,500 (I) 2,700 (D) 11,500 (I) 7,800 (D) 2018 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $109,000 $88,500 45,700 52,500 82,000 58,500 3,700 6, 6,400 52,000 40.500 5,700 13,500

Solution

Operating activity section of statement of cash flow for peach computer using indirect method

Cash flow from operating activities
EBIT operating income	$121,000
Depreciation expenses	$57,000
Income tax expenses	$47,000
decrease in accounts receivable	($6,800)
Increase in inventory	$23,500
Decrease in prepaid rent	($2,700)
Increase in accounts payable	$11,500
Decrease in income tax payable	($7,800)
Net cash flow from operating activity		$242,000