Answer choices given on the left side: (Indirect Method)

• Decrease in accounts payable
• Decrease in accounts receivable
• Decrease in income tax payable
• Decrease in inventory
• Decrease in prepaid rent
• Decrease in salaries payable
• Depreciation expense
• Increase in accounts payable
• Increase in accounts receivable
• Increase in income tax payable
• Increase in inventory
• Increase in prepaid rent
• Increase in salaries payable
• Net income
• Net loss
• Operating expense

Portions of the financial statements for Alliance Technologies are provided below. $405,000 ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales Expenses: Cost of goods sold $235,000 Operating expenses 70,000 Depreciation expense 17,000 Income tax expense 27,000 Total expenses Net income 349,000 $ 56,000 ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 7,000 Increase in inventory 14,000 Decrease in prepaid rent 10,000 Increase in salaries payable 6,000 Decrease in accounts payable 9,000 Increase in income tax payable 24,000 Required: Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) ALLIANCE TECHNOLOGIES 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