Required information Use the following information for the Problems below. (The following information applies to the questions displayed below.) Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. Sales LANSING COMPANY Income Statement For Current Year Ended December 31 revenue $ 109,200 Expenses Cost of goods sold 46,000 Depreciation expense 14,000 Salaries expense 22,000 Rent expense 9,400 Insurance expense 4,200 Interest expense 4,000 Utilities expense 3,200 Net income $ 6,400 Prior Year $6,600 1,740 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $6,000 Inventory 2,380 Accounts payable 4,800 Salaries payable 960 Utilities payable 300 Prepaid insurance 300 Prepaid rent 300 5,400 740 200 360 220 Problem 12-2AB Direct: Computing cash flows from operations LO P5 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.) Answer is complete but not entirely correct. LANSING COMPANY Cash Flows from Operating ActivitiesDirect Method For Current Year Ended December 31 Cash flows from operating activities Net income X $ 6,400 X Depreciation expense 14,000 X Decrease in accounts receivable X 600 x Increase in inventory x (640) X Increase in prepaid rent X (80) X Decrease in accounts payable X (600) X Increase in salaries payable 220 Increase in utilities payable x 100 Net cash used by operating activities X $ 20,000