Answer:
Peach Computer
Cash flow from Operating Activities
Net Income $ 0
Adjustment for Changes in Working Capital :
Decreases in Accounts receivable $4,200
Increases in Inventory ($18,500)
Decrease in Prepaid Rent $1,700
Increases in Accounts payable $6,500
Decrease in Income tax payable ($3,800)
Net Cash used by Operating Activities ($9,900)
Step-by-step explanation:
The Indirect method reconciles the Net Income to Operating Cashflow by adjusting for changes in working capital and non -cash items previously included in net income.