Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales $1,950,000 Expenses: Cost of goods sold $1,110, Operating expenses 620,000 Depreciation expense 56,000 Income tax expense 46,000 Total expenses Net income NO Selected Balance Sheet Data December 31 Cash Increase or Decrease (0) $20,000 (1) 6,400 (D) 23,000 (1) Year 2 $108,000 45, 600 81,000 ,600 51, 000 5,600 Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 1 $88,000 52,000 58,000 6, 40, 13, 3 NE OBORO NE Required: Prepare the operating activities section of the ment of cash flows for the company using the indirect and any decrease in cash as negative amounts.) Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable 45, 600 81.000 3.500 51.000 5 52.000 0.000 5.200 40.000 13.000 6.400 23,000 2.500 11.000 7.400 (D) (1) (0) (1) (D) Required: Prepare the operating activities section of the statement of cash flows for the company using the indirect 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: Adjustments to reconcile net income to nel cash flows from operating activities Net cash flows from operating activities