Exercise 16-2 (Algo) Indirect: Reporting cash flows from operations LO P2 Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Required: $ 71,000 Accounts receivable increase Selected Year-End Balance Sheet Data $ 7,000 Inventory decrease 4,000 700 36,000 Salaries payable increase 13,000 4,000 $ 18,000 Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Answer is complete but not entirely correct. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Changes in current operating assets and liabilities Salaries payable increase Accounts receivable increase Inventory decrease Inventory decrease Net cash provided by operating activities $ 18,000 4,000 700 7,000 4,000 4,000 $ 37,700