7 value 2.00 points Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2018 $710,000 Net sales Expenses $420,000 130,000 33,000 49,000 Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses 632,000 $ 78,000 Net income SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2018, compared to December 31, 2017 Decrease in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in salaries payable Increase in accounts payable Increase in income tax payable $10,000 13,000 3,000 4,000 7,000 8,000 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) SOFTWARE ASSOCIATES Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from oporating activitios Net cash flows from operating activities