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 Selected Year-End Balance Sheet Data Sales $ 72,000 Accounts receivable increase $ 6,000 Expenses: Inventory decrease 3,000 Cost of goods sold 37,000 Salaries payable increase 600 Salaries expense 9,000 Depreciation expense 8,000 Net income $ 18,000 Required: 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