Question

In: Accounting

The income statement and a schedule reconciling cash flows from operating activities to net income are...

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers.

PEACH COMPUTERS
Income Statement
For the Year Ended December 31, 2018
Sales $ 575.0
Cost of goods sold (230.0 )
Gross margin 345.0
Salaries expense $ 69.0
Insurance expense 46.0
Depreciation expense 22.0
Loss on sale of land 20.0 157.0
Income before tax 188.0
Income tax expense (94.0 )
Net income $ 94.0
Reconciliation of Net Income
To Net Cash Flows from Operating Activities
Net income $ 94.0
Adjustments for Noncash Effects
Depreciation expense 22.0
Loss on sale of land 20.0
Changes in operating assets and liabilities:
Decrease in accounts receivable 24.0
Increase in inventory (103.0 )
Decrease in accounts payable (62.0 )
Increase in salaries payable 41.0
Decrease in prepaid insurance 18.0
Increase in income tax payable 88.4
Net cash flows from operating activities $ 142.4


Required:
1. Calculate each of the following amounts for Peach Computers:
2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method).

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