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Income Statement Data Sales $ 78,000 Expenses Cost of goods sold 39,000 Salaries expense 13,000 Depreciation expense 8,000 Net income $18,000 Selected Year-End Balance Sheet
Income Statement Data Sales $ 78,000 Expenses Cost of goods sold 39,000 Salaries expense 13,000 Depreciation expense 8,000 Net income $18,000 Selected Year-End Balance Sheet Data Accounts receivable increase $8,000 Inventory decrease 4,000 Salaries payable increase 1,000 Required: Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Cash flows from operating activities Net income $ 18,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 8,000 Inventory decrease 4,000 Changes in current operating assets and liabilities Accounts receivable increase (8,000) Net cash provided by operating activities 22,000
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