Cain Company reports net cash provided by operating activities of $38,000. It also reports the following information under Adjustments to reconcile net income to net cash provided by operating activities on its statement of cash flows (using the indirect method). Gain on sale of equipment Increase in accounts receivable Depreciation expense $ 11,200 Decrease in inventory 4,600 Increase in prepaid expenses 8,200 Decrease in wages payable $ 7,200 5,200 4,200 Determine Cain's net income. Net income 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 Prepaid rent 380 260 440 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.) LANSING COMPANY Cash Flows from Operating ActivitiesIndirect Method For Current Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities 0 $ 0