Exercise 21-21 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 000s) for Peach Computers PEACH COMPUTERS Income Statement For the Year Ended December 31, 2018 Sales Cost of goods sold $ 335.0 134.0) 201.0 Gross margin Salaries expense Insurance expense Depreciation expense Loss on sale of land Income before tax Income tax expense Net income $37.0 14.0 4.0 61.0 140.0 (70.0) $ 70.0 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income Adjustments for Noncash Effect:s Depreciation expense Loss on sale of land Changes in operating assets and liabilities: $ 70.0 6.0 Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 8.0 (23.0) (14.0) 9.0 10.0 67.6 Net cash flows from operating activities $137.6 Required . 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)