The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in thousands) for Peach Computers: Sales PEACH COMPUTERS Income Statement For the Year Ended December 31, 2024. $ 440.0 Cost of goods sold. Gross margin Salaries expense Insurance expense Depreciation expense Loss on sale of land. Income before taxi Income tax expense Net income (220.0) 220.0 $ 51.0 28.0 13.0 11.0 103.0 117.0 (58.5) $ 58.5 ces Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 58.5 Adjustments for Noncash Effects: Depreciation expense 13.0 Loss on sale of land 11.0 Changes in operating assets and liabilities: Decrease in accounts receivable 15.0 Increase in inventory (58.0) (35.0) 23.0 13.5 54.7 $ 95.7 Decrease in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 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).