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:
$ 73,000
35,000
8,000
7,000
$ 23,000
Selected Year-End Balance Sheet Data
Accounts receivable increase
Inventory decrease
Salaries payable increase
$ 7,000
3,000
600
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.
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
Changes in current operating assets and liabilities
$ 23,000
$ 23,000