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

SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2012 Revenues $ 870,000 Expenses: Cost of goods sold $ 420,000 Operating expenses 160,000 Depreciation expense 42,000 Income tax expense 44,000 Total expenses 666,000 Net income $ 204,000

SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2012, compared to December 31, 2011 Decrease in accounts receivable $ 8,000 Decrease in inventory 14,000 Increase in prepaid rent 2,000 Decrease in operating expenses payable 4,000 Increase in accounts payable 6,000 Increase in income tax payable 7,000

Required:

Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

SOFTWARE ASSOCIATES Statement of Cash Flows For the year ended December 31, 2012

Cash Flows from Operating Activities

Cash received from customers

Cash paid to suppliers

Cash paid for operating expenses

Cash paid for income taxes