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 Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent Current Year Prior Year $ 7,000 3,380 $ 8,600 2,240 5,800 7,400 1,160 840 500 300 400 560 500 320 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 Increase in salaries payable Decrease in accounts payable Increase in utilities payable Decrease in prepaid insurance Increase in prepaid rent $ 19,000 1,600 1,140 320 1,600 200 160 180 Net cash provided by operating activities 7,400 24,200 $ 31,600