The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers:

PEACH COMPUTERS
Income Statement
For the Year Ended December 31, 2024
Sales		$ 545.0
Cost of goods sold		(218.0)
Gross margin		327.0
Salaries expense	$ 65.0
Insurance expense	42.0
Depreciation expense	20.0
Loss on sale of land	18.0	145.0
Income before tax		182.0
Income tax expense		(91.0)
Net income		$ 91.0

Reconciliation of Net Income
To Net Cash Flows from Operating Activities
Net income	$ 91.0
Adjustments for Noncash Effects
Depreciation expense	20.0
Loss on sale of land	18.0
Changes in operating assets and liabilities:
Decrease in accounts receivable	22.0
Increase in inventory	(93.0)
Decrease in accounts payable	(56.0)
Increase in salaries payable	37.0
Decrease in prepaid insurance	17.0
Increase in income tax payable	85.8
Net cash flows from operating activities	$ 141.8

Required:

Calculate each of the following amounts for Peach Computers.

Prepare the cash flows from operating activities section of the statement of cash flows (direct method).

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Question 3 of 6 Total