Question

Required information [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 $ 151,200 Expenses Cost of goods sold 60,000 Depreciation expense 21,000 Salaries expense 36,000 Rent expense 10,800 Insurance expense 5,600 Interest expense 5,400 Utilities expense 4,600 Net income 7,800 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $ 7,400 Inventory 3,780 Accounts payable 6,200 Salaries payable 1,240 Utilities payable 580 Prepaid insurance 440 Prepaid rent 580 Prior Year $ 9,400 2,440 8,200 880 340 640 360

Answer 1

7800 lansing company cash flow from operating activities-indirect method for current year end dec 31 cash flow from operating activities net income adjustments to reconcile net income to net cash provided by operations depreciation 21000 increase in inventory -1340 decrease in accounts receivables 2000 decrease in accounts payables -2000 increase in salaries payable 360 inrease in utilities payable decrease in prepaid insurance 200 increase in prepaid rent -220 net cash provided by operating activities cash from operating activities 240 13 15 16 20240 28040 17 18 lansing company statement of cashflow (direct) cash flow from operating activities cash receipt from customers cash paid to suppliers cash payment for operations interest paid cash flow from onerating activities 153200 -63340 -56420 -5400 28040 25

-220 14 15 16 increase in prepaid rent net cash provided by operating activities cash from operating activities 20240 28040 18 19 20 lansing company statement of cashflow (direct) cash flow from operating activities cash receipt from customers cash paid to suppliers cash payment for operations interest paid cash flow from operating activities 153200 -63340 -56420 -5400 28040 cash collection from customers sales add: decrease in accounts receivables 151200 2000 153200 cash payment for operations total operating expenses less: increase in saaries payable less: increase in utilities payable less: decrease in prepaid insurance add: inrease in prepaid rent 57000 -360 -240 -200 220 56420 33 cash payment to suppliers cost of goods sold add: increase in inventory cost of goods purchased add: decrease in A.P. 60000 1340 61340 2000 63340 35 36 37