Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows as negative amounts.) 59 PEACH COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash flows from operating activities Net Income $ 100,000 Depreciation expense 50,000 Decrease in accounts receivable Increase in inventory es Net cash flows from operating activities $ 150,000 Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2018 Net sales $1,800,000 Expenses: Cost of goods sold $1,050,000 Operating expenses 560,000 Depreciation expense 50,000 Income tax expense 40,000 Total expenses 1,700,000 Net income $ 100,000 PEACH COMPUTER Selected Balance Sheet Data December 31 Increase (0) or 2018 2017 Decrease (D) $102,000$85,000 Cash $17,000 (0) Accounts receivable 45,000 49.000 4,000 (D) Inventory 75,000 55,000 20,000 (1) Prepaid rent 3,000 5,000 2,000 (D) Accounts payable 45,000 37,000 8,000 (1) Income tax payable 5,000 10,000 5.000 (D)