Question

help me fill out the charts please

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 $139,200 Expenses Cost of goods sold 56,000 Depreciation expense 19,000 Salaries expense 32,000 Rent expense 10,400 Insurance expense 5,200 Interest expense 5,000 Utilities expense 4,200 Net income $ 7,400 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $ 7,000 Inventory 3,380 Accounts payable 5,800 Salaries payable 1,160 Utilities payable 500 Prepaid insurance 400 Prepaid rent 500 Prior Year $ 8,600 2,240 7,400 840 300 560 320

Answer 1

First question is being answered here:

In calculating the cash from operating activities from indirect method, we will start with the net income. We will add back the non cash item of depreciation in it. Then we will adjust the amount for increase or decrease in cash due to increase or decrease in current assets or current liabilities.Like, an increase in current assets will reduce cash, so we will deduct it and a decrease in current assets will increase cash, so we will add it. Similarly, an increase in current liabilities will increase cash, so it will be added and a decrease in current liabilities will reduce cash, so it will be deducted. Required statement is given below:

Cash flows from operating activities for the year ended December 31:

Description	Amount	Amount
Cash flows from operating activities:
Net income		7400
Adjustments to reconcile net income to net cash provided by operations:
Add: Depreciation expense	19000
Add: Decrease in accounts receivable	1600
Less: Increase in inventory	-1140
Less: Decrease in accounts payable	-1600
Add: Increase in salaries payable	320
Add: Increase in utilities payable	200
Add: Decrease in prepaid insurance	160
Less: Increase in prepaid rent	-180
Total adjustments		-18360
Net cash flows from operating activities		-10960