Portions of the financial statements for Alliance Technologies are provided below. IES ncome statement 2021 Net sales Expenses: $385,000 Cost of goods sold Operating expenses Depreciation expense Income tax expense $225,000 68,000 16,800 26,000 Total expenses 335,800 s 49,200 ALLIANCE TECENOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 $ 6,800 13,800 9,800 5,800 8,800 23,200 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the outflows and any decrease in cash as negative amounts.) 3 Answer is complete but not entirely correct ALLIANCE TECHNOLOGIES Statement of Cash Flows (partia) For the Year Ended December 31, 2021 from Operating Activities: Net income Adjustments to reconcile net income to net cash flows from operating activities 26.000 3 Operating expense Decrease in accounts receivable Decrease in prepaid rent Decrease in salaries payable Decrease in income tax payable increase in inventory increase in accounts payable Operating expense 6.800 9,800 23.200 ! (13800 8,800 01 (26,000) S 89,000 Net cash flows from operating activities