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		$ 440.0
Cost of goods sold		(220.0)
Gross margin		220.0
Salaries expense	$ 51.0
Insurance expense	28.0
Depreciation expense	13.0
Loss on sale of land	11.0	103.0
Income before tax		117.0
Income tax expense		(58.5)
Net income		$ 58.5

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)
Decrease in accounts payable	(35.0)
Increase in salaries payable	23.0
Decrease in prepaid insurance	13.5
Increase in income tax payable	54.7
Net cash flows from operating activities	$ 95.7

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).