Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2012 Revenues $ 820,000 Expenses: Cost of goods sold $ 440,000 Operating expenses 130,000 Depreciation expense 34,000 Income tax expense 51,000 Total expenses 655,000 Net income $ 165,000 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2012, compared to December 31, 2011 Decrease in accounts receivable $ 6,000 Decrease in inventory 13,000 Increase in prepaid rent 4,000 Decrease in operating expenses payable 4,000 Increase in accounts payable 7,000 Increase in income tax payable 8,000 Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method.