Question

(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 $106,200 Expenses Cost of goods sold 45,000 Depreciation expense 13,500 Salaries expense 21,000 Rent expense 9,300 Insurance expense 4,100 Interest expense 3,900 Utilities expense 3,100 Net income $ 6,300 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $ 5,900 Inventory 2,280 Accounts payable 4,700 Salaries payable 940 Utilities payable 280 Prepaid insurance 290 Prepaid rent 280 Prior Year $ 6,400 1,690 5,200 730 190 340 210

Answer 1

	Statement of Cash Flows
	Net Income
	© www.excel-skills.com	AMOUNT
	Cash flows from operating activities
	Cash receipts from customers	1,06,700.00
	Cash paid to suppliers	(46,090.00)
	Cash Paid for Salaries Expenses (21,000 -210)	(20,790.00)
	Cash paid for Rent Exenses ( 9,300 + 70)	(9,370.00)
	Cash Paid for Insurance Expens(4100 -50)	(4,050.00)
	Interest Expenses	(3,900.00)
	Utilities Expenses (3100 -90)	(3,010.00)
	Net cash from operating activities		19,490.00
	Working notes: 1
	Calculation of cash collection from customer
	Sales	1,06,200.00
	Add: Opening AR	6,400.00
	Less: Closing AR	5,900.00
	Cash Collected	1,06,700.00
	Working notes: 2
	Calculation of purhcase of inventory
	Cost of Goods Sold	45,000.00
	Add: Closing inventory	2,280.00
	Less : Opening Inventory	1,690.00
	Material Purhcased	45,590.00
	Calculation of amount paid to supplied
	Op. Balance of Acct Payable	5,200.00
	Add: Purchases	45,590.00
	Less: Cl. Balance of Account payable	4,700.00
	Cash paid	46,090.00
	Salaries Expenses:
	Op. Balance	730.00
	Add:	21,000.00
	Cl Balance	940.00
		20,790.00