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 $ 305 Cost of goods sold (185 ) Gross margin 120 Salaries expense $ 41 Insurance expense 19 Depreciation expense 11 Loss on sale of land 5 76 Income before tax 44 Income tax expense (22 ) Net income $ 22 Reconciliation of Net Income To Net Cash Flows from Operating Activities Net income $ 22 Adjustments for Noncash Effects Depreciation expense 11 Loss on sale of land 5 Changes in operating assets and liabilities: Decrease in accounts receivable 6 Increase in inventory (13 ) Decrease in accounts payable (8 ) Increase in salaries payable 5 Decrease in prepaid insurance 9 Increase in income tax payable 20 Net cash flows from operating activities $ 57 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).