Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance Sheet Data Sales $ 160,000 Accounts receivable increase $ 10,000 Expenses: Inventory decrease 16,000 Cost of goods sold 100,000 Salaries payable increase 1,000 Salaries expense 24,000 Depreciation expense 12,000 Net income $ 24,000 Required: Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

$43,000

Explanation:

Preparation of the operating activities section of the statement of cash flows using the indirect method.

Cash flows from operating activities

Net income$24,000

Less Accounts receivable increase (10,000)

Inventory Decrease 16,000

Salaries payable increase 1,000

Depreciation expense 12,000

Net cash provided by operating activities

$43,000

Therefore the operating activities section of the statement of cash flows using the indirect method will be $43,000

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