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 es Expenses Cost of goods sold Depreciation expense. Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net incone $ 148,200 59,000 20,500 35,000 10,700 5,500 5,300 4,500 $7,700 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent Current Year Prior Year $ 7,300 $ 9,200 3,680 2,398 6,100 8,000 1,220 870 560 330 430 6201 560 350 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. es 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 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 Decrease in accounts receivable Increase in inventory Decrease in prepaid insurance Increase in prepaid rent Decrease in accounts payable Increase in salaries payable Increase in utilities payable $ 20,500 $ 7,700 20,500 Net cash provided by operating activities $ 28,200