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Required information [The following information applies to the questions displayed below) Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 121,200 Expenses Cost of goods sold 50,000 Depreciation expense 16,000 Salaries expense 26,000 Rent expense 9,800 Insurance expense 4,600 Interest expense 4,400 Utilities expense 3.600 Net Income $ 6,800 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,400 $ 7,400 Inventory 2,780 1,940 Accounts payable 5,200 6,200 Salaries payable 1.040 780 Utilities payable 380 240 Prepaid insurance 340 440 Prepaid rent 380 260 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare the operating activities section of the statement of cash flows using the Indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) $ 6,800 LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Decrease in accounts receivable Increase in inventory Increase in salaries payable Decrease in accounts payable Increase in utilities payable Decrease in prepaid insurance Increase in prepaid rent 0 $ 6,800

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