a) Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets:

Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable $31, 285 $37, 542 Prepaid rent 1, 447 1, 266 Interest receivable 282 226 Accounts payable 9, 194 11, 033 Salaries payable 3,087 3,528 Unearned revenue 2, 777 3, 702 The income statement reported a $1,940 gain on the sale of equipment, an $600 loss on the sale of land, and $3,500 of depreciation expense. Net income for the period was $53,009.Cash flows from operating activities: Plus: Less: Net cash flow from operating activities $ 0Lansing Company's 2016 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2015 and 2016. follow. LANSING COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue $61,000 Expenses Cost of goods sold 21,000 Depreciation expense 4,500 Salaries expense 11,000 Rent expense 1,500 Insurance expense 1,400 Interest expense 1,300 Utilities expense 1,200 Net income $19,100 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2016 2015 Accounts receivable $3,900 $3,940 Inventory 950 773 Accounts payable 1,200 1,300 Salaries payable 390 210 Utilities payable 140 100 Prepaid insurance 150 190 Prepaid rent 120 E0 LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Year Ended December 31, 2016 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: 0 0