A)

Peach Computer reports net income of $158,000. Included in net income is a gain on the sale of land of $16,500. A comparison of this years and last years balance sheets reveals an increase in accounts receivable of $28,000, an increase in inventory of $16,500, and a decrease in accounts payable of $48,000.

Portions of the financial statements for Peach Computer are provided below.

PEACH COMPUTER Income Statement For the year ended December 31, 2015
Net sales		$1,575,000
Expenses:
Cost of goods sold	$960,000
Operating expenses	470,000
Depreciation expense	41,000
Income tax expense	31,000
Total expenses		1,502,000
Net income		$ 73,000

PEACH COMPUTER Selected Balance Sheet Data December 31
	2015	2014	Increase (I) or Decrease (D)
Cash	$93,000	$80,500	$12,500	(I)
Accounts receivable	46,900	53,500	6,600	(D)
Inventory	66,000	50,500	15,500	(I)
Prepaid rent	2,100	3,200	1,100	(D)
Accounts payable	36,000	32,500	3,500	(I)
Income tax payable	4,100	5,500	1,400	(D)

Required:

Prepare the operating activities section of the statement of cash flows for Peach Computer using theindirect method. (List cash outflows and any decrease in cash as negative amounts.)