Exercise $16-2$ Indirect: Reporting cash flows from operations P$2$

Hampton Company reports the following information for its recent calendar year. Prepare the operating activities section of the statement of cash flows using the indirect method.

Income Statement Data

Sales $$160,000$

Expenses: Cost of Goods Sold $$100,000$

Salaries Expense $$24,000$

Depreciation Expense $$12,000$

Net Income $$24,000$

Selected Year$-$End Balance Sheet Data

Accounts receivable increase $$10,000$

Inventory decrease $$16,000$

Salaries payable increase $$1,000$