The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in 000s) for Peach Computers. PEACH COMPUTERS Income Statement For the Year Ended December 31, 2018 S 425.0 (170.0) Sales Cost of goods sold Gross margin 255.0 Salaries expense $49.0 Insurance expense 26.0 Depreciation expense 12.0 Loss on sale of land 97.0 10.0 Income before tax 158.0 (79.0) Income tax expense S 79.0 Net income Reconciliation of Net Income To Net Cash Flows from Operating Activities S 79.0 Net income Adjustments for Noncash Effects Depreciation expense Loss on sale of land 12.0 10.0 Changes in operating assets and liabilities: Decrease in accounts receivable 14.0 Increase in inventory Decrease in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable (53.0) (32.0) 21.0 13.0 75.4 $139.4 Net cash flows from operating activities Required: 1. Calculate each of the following amounts for Peach Computers: 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method)