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 $ 365.0 Cost of goods sold (146.0) Gross margin 219.0 Salaries expense $41.0 Insurance expense Depreciation expense 8.0 Loss on sale of land 6.0 73.0 Income before tax 146.0 Income tax expense (73.0) Net income $ 73.0 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 73.0 Adjustments for Noncash Effects Depreciation expense 8.0 Loss on sale of land Changes in operating assets and liabilities: Decrease in accounts receivable 10.0 Increase in inventory (33.0) Decrease in accounts payable (20.0) Increase in salaries payable 13.0 Decrease in prepaid insurance 11.0 Increase in income tax payable 70.2 Net cash flows from operating activities $138.2 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)