Chapter 11 - Homework 4.2 6 Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales points Expenses: eBook Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income e Hint $1,070,000 580,000 52,000 42,000 $1,850,000 1,744,000 $ 106,000 Print Year 2 Cash References $104,000 Selected Balance Sheet Data December 31 Increase (I) or Decrease (D) $18,000 (I) Year 1 $86,000 Accounts receivable 45,200 50,000 4,800 (D) Inventory 77,000 56,000 21,000 (I) Prepaid rent 3,200 5,400 2,200 (D) Accounts payable 47,000 38,000 9,000 (I) Income tax payable 5,200 11,000 5,800 (D) Required: Prepare the operating activities section of the statement of cash flows for the company using the direct method. (List cash outflows and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 2 Cash flows from operating activities: Net cash flows from operating activities $ 0