Portions of the financial statements for Software Associates are provided below.

SOFTWARE ASSOCIATES
Selected Balance Sheet Data
December 31, 2012, compared to December 31, 2011
Decrease in accounts receivable .......................................$ 9,000
Decrease in inventory ....................................................12,000
Increase in prepaid rent ...................................................2,000
Decrease in operating expenses payable ................................3,000
Increase in accounts payable .............................................6,000
Increase in income tax payable ..........................................7,000
Required:
Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method.

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SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2012 Revenues $610,000 Cost of goods sold Operating expenses $370,000 120,000 32,000 44,000 Depreciation expense Total expenses Net income $ 44,000