Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current a prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense $ 139,200 56,000 19,000 32,000 10,400 5,200 Interest expense Utilities expense Net income 5,000 4,200 $7,400 LANSING COMPANY Selected Balance Sheet Accounts Current Year At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent Prior Year $ 7,000 3,380 $ 8,600 2,240 5,800 7,400 1,160 840 500 300 400 560 500 320 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 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income $ 139,200 56,000 19,000 32,000 10,400 5,200 5,000 4,200 $ 7,400 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Accounts receivable Current Year $7,000 Prior Year $8,600 Inventory 3,300 2,240 Accounts payable 5,000 7,400 Salaries payable 1,100 840 Utilities payable 500 300 Prepaid Insurance 409 560 Prepaid rent 320 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. LANSING COMPANY Cash Flows from Operating Activities-Indirect Method Cash flows from operating activities Net income For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Increase in salaries payable Changes in current assets and current liabilities 7.400 $ 2400