Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect 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, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,750,000 Expenses: Cost of goods sold $1,030,000 Operating expenses 540,000 Depreciation expense 48,000 Income tax expense 38,000 Total expenses 1,656,000 Net income $ 94,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 2018 $100,000 46,200 73,000 2,800 43,000 4,800 2017 $84,000 50,000 54,000 4,600 36,000 9,000 Increase (0) or Decrease (D) $16,000 (0) 3,800 (D) 19,000 (1) 1,800 (D) 7,000 (1) 4,200 (D)