Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2018 $604,000 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $364,000 114,000 31,400 41,000 Total expenses 550,400 Net income $ 53,600 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2018, compared to December 31, 2017 Decrease in accounts receivable Decrease in inventory Increase in prepaid rent Decrease in salaries payable Increase in accounts payable Increase in income tax payable $8,400 11,400 1,400 2,400 5,400 6,400