ACC 307 6-2 Homework 2 - The income statement and a...

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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, 2013 Sales $ 305 Cost of goods sold (185) Gro ss margin 120 Salari es expens e $ 41 Insura nce expens e 19 Depre ciation expens e 11 Loss on sale of land 5 76 Incom e before tax 44 Incom e tax expens e (22) Net income $ 22 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 22 Adjustments for Noncash Effects Depreciation expense 11
Loss on sale of land 5 Changes in operating assets and liabilities: Decrease in accounts receivable 6 Increase in inventory (13) Decrease in accounts payable (8) Increase in salaries payable 5 Decrease in prepaid insurance 9 Increase in income tax payable 20 Net cash flows from operating activities $ 57 Required: 1. Calculate each of the following amounts for Peach Computers

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