Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021 Net sales $608,000 Expenses: Cost of goods sold $368,000 Operating expenses 118,000 Depreciation expense 31,800 Income tax expense 43,000 Total expenses 560,800 Net income $ 47,200 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 8,800 Decrease in inventory 11,800 Increase in prepaid rent 1,800 Decrease in salaries payable 2,800 Increase in accounts payable 5,800 Increase in income tax payable 6,800 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.) SOFTWARE ASSOCIATES Statement of Cash Flows (partial) For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash flows from operating activities: Increase in income tax payable Net cash flows from operating activities