Required information Use the following information for the Problems below. (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 $145,200 Expenses Cost of goods sold 58,000 Depreciation expense 20,000 Salaries expense 34,000 Rent expense 10,600 Insurance expense 5,400 Interest expense 5,200 Utilities expense 4,400 Net income $7,600 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable 57,200 Inventory 3,580 Accounts payable 6,000 Salaries payable 1.200 Utilities payable 540 Prepaid insurance 420 Prepaid rent 540 Prior Year $9,000 2,340 7.800 860 320 600 340 Problem 12-1A Indirect: Computing cash flows from operations LO P2 Required: Prepare the operating activities section of the statement of cash flows using the Indirect method for the current year. (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 wet Income LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $ 7,200 Inventory 3,580 Accounts payable 6,000 Salaries payable 1,200 Utilities payable 540 Prepaid insurance 420 Prepaid rent 540 Prior Year $9,000 2,340 7,800 860 320 600 340 Problem 12-1A Indirect: Computing cash flows from operations LO P2 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (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 reconcle net income to net cash provided by operations Accounts payable decrease S 6.000 Inventory increase Accounts payable decrease 6,000 Notes payable long-term increase Uits payable increase Prepaid insurance decrease Prepaid rent increase 100 12.100 12.100 $