Portions of the financial statements for software Associates are provided below. $602,000 SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021 Net salos Expenses : Cost of goods sold $362,000 Operating expenses 112,000 Depreciation expense 31,200 Income tax expense 40,000 Total expenses Net income 545,200 $ 56,800 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 8, 200 Decrease in inventory 11,200 Increase in prepaid rent 1,200 Decrease in salaries payable 2,200 Increase in accounts payable 5,200 Increase in income tax payable 6,200 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: + Net cash flows from operating activities