Portions of the financial statements for Alliance Technologies are provided below.

ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018
Net sales		$	365,000
Expenses:
Cost of goods sold	$215,000
Operating expenses	66,000
Depreciation expense	16,600
Income tax expense	25,000
Total expenses			322,600
Net income		$	42,400

ALLIANCE TECHNOLOGIES

Selected Balance Sheet Data

December 31, 2018, compared to December 31, 2017

Decrease in accounts receivable

$ 6,600

Increase in inventory

13,600

Decrease in prepaid rent

9,600

Increase in salaries payable

5,600

Decrease in accounts payable

8,600

Increase in income tax payable

22,400

Portions of the financial statements for Alliance Technologies are provided below.

ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2018
Net sales		$	365,000
Expenses:
Cost of goods sold	$215,000
Operating expenses	66,000
Depreciation expense	16,600
Income tax expense	25,000
Total expenses			322,600
Net income		$	42,400

ALLIANCE TECHNOLOGIES
Selected Balance Sheet Data
December 31, 2018, compared to December 31, 2017
Decrease in accounts receivable	$ 6,600
Increase in inventory	13,600
Decrease in prepaid rent	9,600
Increase in salaries payable	5,600
Decrease in accounts payable	8,600
Increase in income tax payable	22,400

Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) ALLIANCE TECHNOLOGIES Statement of Cash Flows (partial) For the Year Ended December 31, 2018 Cash Flows from operating Activities: Adjustments to reconcile net income to net cash flows from operating activities Net cash flows from operating activities