Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER
Income Statement
For the year ended December 31, 2021
Net sales $ 1,825,000
Expenses:
Cost of goods sold $ 1,060,000
Operating expenses 570,000
Depreciation expense 51,000
Income tax expense 41,000
Total expenses 1,722,000
Net income $ 103,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2021 2020 Increase (I) or Decrease (D)
Cash $ 103,000 $ 85,500 $ 17,500 (I)
Accounts receivable 45,100 49,500 4,400 (D)
Inventory 76,000 55,500 20,500 (I)
Prepaid rent 3,100 5,200 2,100 (D)
Accounts payable 46,000 37,500 8,500 (I)
Income tax payable 5,100 10,500 5,400 (D)
Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)