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, 2021
Sales					$	485.0
Cost of goods sold						(194.0	)
Gross margin						291.0
Salaries expense	$	57.0
Insurance expense		34.0
Depreciation expense		16.0
Loss on sale of land		14.0				121.0
Income before tax						170.0
Income tax expense						(85.0	)
Net income					$	85.0

Reconciliation of Net Income To Net Cash Flows from Operating Activities
Net income	$	85.0
Adjustments for Noncash Effects
Depreciation expense		16.0
Loss on sale of land		14.0
Changes in operating assets and liabilities:
Decrease in accounts receivable		18.0
Increase in inventory		(73.0	)
Decrease in accounts payable		(44.0	)
Increase in salaries payable		29.0
Decrease in prepaid insurance		15.0
Increase in income tax payable		80.6
Net cash flows from operating activities	$	140.6

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).