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 Bales revenue $ 133,200 Expenses Cont of goods sold 54.000 Depreciation expense 18,000 salaries expense 30.000 Rent expense 10.200 Insurance expense 5.000 Interest expense 4.000 Utilities expone 4,000 Net Income 37.200 LANSING COMPANY Selected Balance sheet Nocounts At December 31 Current Year Prior Year Mccounts receivable 36,800 5.8.200 Inventory 3,180 2,140 Accounts payable 5,600 7.000 salaries payable 1,120 820 Utilities payable 460 280 Prepaid insurance 380 520 Prepaid rent 460 300 $ 7,200 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 18,000 Changes in current assets and current liabilities Decrease in accounts receivable 1,400 Increase in inventory (1,040) Decrease in accounts payable (1,400) Increase in salaries payable 300 Increase in utilities payable 180 Decrease in prepaid insurance 140 Increase in prepaid rent (160) 17,420 24,620 Net cash provided by operating activities Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. (Amounts to be deducted should be indicated with a minus sign.) LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31 Cash flows from operating activities Cash receipts from customers S 134,600 Cash payments to suppliers Cash payments for salaries Cash payments for Utilities Cash payments for insurance Cash payments for rent Net cash provided by operating activities 5 134,600