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. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $121,200 Expenses Cost of goods sold 50,000 Depreciation expense 16,000 Salaries expense 26,000 Rent expense 9,800 Insurance expense 4,600 Interest expense 4,400 Utilities expense 3,600 Net income $ 6,800 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $6,400 Inventory 2,780 Accounts payable 5,200 Salaries payable 1,040 Utilities payable 380 Prepaid insurance 340 Prepaid rent 380 Prior Year $ 7,400 1,940 6,200 780 240 440 260 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) X Answer is complete but not entirely correct. LANSING COMPANY Cash Flows from Operating ActivitiesIndirect Method For Current Year Ended December 31 Cash flows from operating activities: Net income $ 6,800 Adjustments to reconcile net income to net cash provided by operations: LANSING COMPANY Cash Flows from Operating ActivitiesIndirect Method For Current Year Ended December 31 Cash flows from operating activities: Net income $ Adjustments to reconcile net income to net cash provided by operations: 6,800 Depreciation expense Accounts receivable decrease 16,000 (6,400) X 2,780 X 380 X 40 X Inventory increase Prepaid rent increase Prepaid insurance decrease Accounts payable decrease Salaries payable increase Utilities payable increase Net cash provided by operating activities 5,200 X (1,040) X (380) X 16,580 23,380 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 ActivitiesDirect Method For Current Year Ended December 31 Cash flows from operating activities 0