nts 1 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 $ 106,200 45,000 13,500 21,000 9,300 4,100 3,900 3,100 $ 6,300 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 5,900 Inventory 2,280 $ 6,400 1,690 Accounts payable 4,700 5,200 Salaries payable 940 730 Utilities payable 280 190 Prepaid insurance 290 340 Prepaid rent 280 210 7.5 points 1 Required information LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Net income + Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities. Increase in accounts receivable $ 7,500 0 $ 7,500