Portions of the financial statements for Software Associates are provided below. $604,000 SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021 Net sales Expenses : Cost of goods sold $364,000 Operating expenses 114,000 Depreciation expense 31,400 Income tax expense 41,000 Total expenses Net income 550,400 $ 53,600 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 8,400 Decrease in inventory 11,400 Increase in prepaid rent 1,400 Decrease in salaries payable 2,400 Increase in accounts payable 5,400 Increase in income tax payable 6,400 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the direct method. (List cash outflows as negative amounts.) SOFTWARE ASSOCIATES Statement of Cash Flow (Partial) For the Year Ended December 31, 2021 Cash Flows from Operating Activities: SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 8,400 Decrease in inventory 11,400 Increase in prepaid rent 1,400 Decrease in salaries payable 2,400 Increase in accounts payable 5,400 Increase in income tax payable 6,400 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the direct method. (List cash outflows as negative amounts.) SOFTWARE ASSOCIATES Statement of Cash Flow (Partial) For the Year Ended December 31, 2021 Cash Flows from Operating Activities: $ 0 Net cash flows from operating activities