Suved 1 - Homework i Portions of the financial statements for a company are provided below. Income Statement For the year ended December 31, Year 2 Net sales $1,600,000 Expenses: Cost of goods sold $970,000 Operating expenses 480,000 Depreciation expense Income tax expense 32,000 Total expenses 1,524,000 Net income $ 42,000 76,000 Selected Balance Sheet Data December 31 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Year 2 $94,000 46,800 67,000 2,200 37,000 1,200 Year 1 $81,000 53,000 51,000 3,400 33,000 6,000 Increase (1) or Decrease (D) $13,000 (1) 6,200 (D) 16,000 (I) 1,200 (D) 4,000 (1) 1,800 (0) ces Required: Prepare the operating activities section of the statement of cash flows for the company using the direct method. (List cash outflows and any decrease in cash as negative amounts.) Statement of Cash Flows (partial) For the Year Ended December 31, Year 2 Cash flows from operating activities. Net cash flows from operating activities $ 0