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 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense $127,200 52,000 17,000 28,000 10,000 4,800 4,600 utilities expense 3,800 Net income $ 7,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Accounts receivable Inventory s Accounts payable Salaries payable utilities payable Prepaid insurance Current Year Prior Year $6,600 $7,000 2,980 2,040 5,400 6,600 1,080 800 420 200 360 480 #B 2 D 54 D 15 9 0 U 88 20 69 0 00 L 0 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $6,600 $7,800 Inventory 2,980 2,048 Accounts payable 5,400 6,600 Salaries payable 1,080 800 Utilities payable 420 260 Prepaid insurance 360 480 Prepaid rent 420 280 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. (Amounts to be deducted should be indicated with a minus sign.) LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31 Cash flows from operating activities 4 63 94 e 6 430 9 5F L P d 96 4P 0 9 61 88 t Y U g h J 01 0 4 P