E 21-21 Cash flows from operating activities (direct method) derived from an income statement; cash flows from operating activities (indirect method) The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers. Required: 1. Calculate each of the following amounts for Peach Computers. a. Cash received from customers during the reporting period b. Cash paid to suppliers of goods during the reporting period c. Cash paid to employees during the reporting period PEACH COMPUTERS Income Statement For the Year Ended December 31, 2021 Sales Cost of goods sold Gross margin Salaries expense Insurance expense Depreciation expense Loss on sale of land $ 305 (185) 120 $41 19 11 5 76 Income before tax Income tax expense 44 (22) Net income $ 22 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $22 11 5 d. Cash paid for insurance during the reporting Adjustments for Noncash Effects period e. Cash paid for income taxes during the reporting period 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method). Depreciation expense Loss on sale of land Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 16 (13) 60859 20 Net cash flows from operating activities $57