Portions of the financial statements for Peach Computer are provided below.

PEACH COMPUTER
Income Statement
For the year ended December 31, 2018
Net sales $1,775,000
Expenses:
Cost of goods sold $1,040,000
Operating expenses 550,000
Depreciation expense 49,000
Income tax expense 39,000
Total expenses 1,678,000
Net income $ 97,000


PEACH COMPUTER
Selected Balance Sheet Data
December 31
2018 2017 Increase (I)
or
Decrease (D)
Cash $101,000 $84,500 $16,500 (I)
Accounts receivable 46,100 49,500 3,400 (D)
Inventory 74,000 54,500 19,500 (I)
Prepaid rent 2,900 4,800 1,900 (D)
Accounts payable 44,000 36,500 7,500 (I)
Income tax payable 4,900 9,500 4,600 (D)

Required:

Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method.