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 | $ 8,000 |
| Expenses: | Inventory decrease | 4,000 | |
| Cost of goods sold | 42,000 | Salaries payable increase | 700 |
| Salaries expense | 11,000 | ||
| Depreciation expense | 8,000 | ||
| Net income | $ 11,000 |
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method.
Note: Enter amounts to be deducted as negative values.
Solution – Hampton Company reports the following
