Lansing Companys current-year income statement and selected balance sheet data at December 31 of the current and prior years follow.

Prepare the operating activities section of the statement of cash flows using the indirect method for the current year.

LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $127,200 Expenses Cost of goods sold 52,000 Depreciation expense 17,000 Salaries expense 28,000 Rent expense 10,000 Insurance expense 4,800 Interest expense 4,600 Utilities expense Net income 3,800$7,000 \begin{tabular}{lcc} \multicolumn{4}{c}{ LANSING COMPANY } \\ & \multicolumn{2}{c}{ Selected Balance Sheet Accounts } \\ At December 31 & Current Year & Prior Year \\ Accounts receivable & $6,600 & $7,800 \\ Inventory & 2,980 & 2,040 \\ Accounts payable & 5,400 & 6,600 \\ Salaries payable & 1,080 & 800 \\ Utilities payable & 420 & 260 \\ Prepaid insurance & 360 & 480 \\ Prepaid rent & 420 & 280 \end{tabular} LANSING COMPANY Cash Flows from Operating Activities-Indirect 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