Exercise 12-2 Indirect: Reporting cash flows from operations LO P2 Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $72,000 Accounts receivable increase $7,000 Expenses Cost of goods sold Salarles expense Depreciation expense Net income Inventory decrease Salaries payable increase 4,000 900 36,000 13,000 5,000 $18,000 Required: Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method (Amounts to be deducted should be indicated with a minus sign.) +] Cash flows from operating activitles Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities