Portions of the financial statements for Software Associates are provided below.

SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021
Net sales					$	670,000
Expenses:
Cost of goods sold	$	400,000
Operating expenses		126,000
Depreciation expense		32,600
Income tax expense		47,000
Total expenses						605,600
Net income					$	64,400

SOFTWARE ASSOCIATES
Selected Balance Sheet Data
December 31, 2021, compared to December 31, 2020
Decrease in accounts receivable	$	9,600
Decrease in inventory		12,600
Increase in prepaid rent		2,600
Decrease in salaries payable		3,600
Increase in accounts payable		6,600
Increase in income tax payable		7,600

Required:

Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Portions of the financial statements for Software Associates are provided below.

SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021
Net sales					$	670,000
Expenses:
Cost of goods sold	$	400,000
Operating expenses		126,000
Depreciation expense		32,600
Income tax expense		47,000
Total expenses						605,600
Net income					$	64,400

SOFTWARE ASSOCIATES
Selected Balance Sheet Data
December 31, 2021, compared to December 31, 2020
Decrease in accounts receivable	$	9,600
Decrease in inventory		12,600
Increase in prepaid rent		2,600
Decrease in salaries payable		3,600
Increase in accounts payable		6,600
Increase in income tax payable		7,600

Required:

Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)