Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales $1,575,000 Expenses: Cost of goods sold $960,000 Operating expenses 470,000 Depreciation expense 41,000 Income tax expense 31,000 Total expenses 1,502,000 Net income $ 73,000 Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 2 $93,000 46,900 66.000 2,100 36,000 4,100 Year 1 $80,500 53,500 50,500 3,200 32,500 5,500 Increase (I) or Decrease (D) $12,500 (I) 6,600 (D) 15,500 (I) 1,100 (D) 3,500 (1) 1,400 (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: Net income | $ 73,000 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities 73,000 Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales $1,575,000 Expenses: Cost of goods sold $960,000 Operating expenses 470,000 Depreciation expense 41,000 Income tax expense 31,000 Total expenses 1,502,000 Net income $ 73,000 Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 2 $93,000 46,900 66.000 2,100 36,000 4,100 Year 1 $80,500 53,500 50,500 3,200 32,500 5,500 Increase (I) or Decrease (D) $12,500 (I) 6,600 (D) 15,500 (I) 1,100 (D) 3,500 (1) 1,400 (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: Net income | $ 73,000 Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities 73,000