EANS Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 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 Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 2 $101,000 46,100 74,000 2,900 44,000 4,900 Year 1 $84,500 49,500 54,500 4,800 36,500 9,500 Increase (I) or Decrease (D) $16,500 (I) 3,400 (D) 19,500 (I) 1,900 (D) 7,500 (I) 4,600 (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 December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 2 $101,000 46,100 74,000 2,900 44,000 4,900 Year 1 $84,500 49,500 54,500 4,800 36,500 9,500 Increase (I) OT Decrease (D) $16,500 (I) 3,400 (D) 19,500 (1) 1,900 (D) 7,500 (I) 4,600 (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