Exercise 21-21 (Algo) Cash flows from operating activities (direct method) derived from an income statement; cash flows from operating activities (indirect method) [LO21-3, 21-4]

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					$	590.0
Cost of goods sold						(354.0	)
Gross margin						236.0
Salaries expense	$	71.0
Insurance expense		48.0
Depreciation expense		23.0
Loss on sale of land		21.0				163.0
Income before tax						73.0
Income tax expense						(36.5	)
Net income					$	36.5

Reconciliation of Net Income To Net Cash Flows from Operating Activities
Net income	$	36.5
Adjustments for Noncash Effects
Depreciation expense		23.0
Loss on sale of land		21.0
Changes in operating assets and liabilities:
Decrease in accounts receivable		25.0
Increase in inventory		(108.0	)
Decrease in accounts payable		(65.0	)
Increase in salaries payable		43.0
Decrease in prepaid insurance		18.5
Increase in income tax payable		30.7
Net cash flows from operating activities	$	24.7

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).