Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $1,600,000 Expenses: Cost of goods sold $970,000 Operating expenses 480,000 Depreciation expense 42,000 Income tax expense 32,000 Total expenses 1,524,000 Net income 76,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 2021 $94,000 46,800 67,000 2,200 37,200 4,200 2020 $81,000 53,000 51,000 3,400 33,000 6,000 Increase (I) or Decrease (0) $13,000 (1) 6,200 (D) 16,000 (1) 1,200 (D) 4,000 (I) 1,800 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.) PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash flows from operating activities: Depreciation expense 42,000 Decrease in accounts receivable 6,200 Increase in inventory (16,000) Decrease in prepaid rent 1,200 Increase in accounts payable 4.000 Decrease in income tax payable (1.800) Net cash flows from operating activities $ 35,600