Refer to the information provided for Peach Computer in E11-11.
E11-11
Portions of the financial statements for Peach Computer are provided below.

Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method.

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PEACH COMPUTER Income Statement For the year ended December 31, 2018 $2,050,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $1,150,000 660,000 60,000 50,000 1,920,000 $ 130,000 Net income PEACH COMPUTER Selected Balance Sheet Data December 31 2018 2017 Increase (1) or Decrease (D) $22,000 0) Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $112,000 $90,000 54,000 60,000 7,000 42,000 15,000 46,000 85,000 4,000 55,000 6,000 8,000 (D) 25,000 0) 3,000 (D) 13,000 () 9,000 (D)