Question

Skip to main content

Chapter 12 Problems

AnswerSaved

Help opens in a new windowSave & ExitSubmit

Item1

4points

eBook

Print

Check my workCheck My Work button is now enabled5

Item 1

Item 1 4 points

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					Prior Year
Accounts receivable		$	7,400				$	9,400
Inventory			3,780					2,440
Accounts payable			6,200					8,200
Salaries payable			1,240					880
Utilities payable			580					340
Prepaid insurance			440					640
Prepaid rent			580					360

Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) LANSING COMPANY Cash Flows from Operating Activities—Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations:

Answer 1

Lansing company Cash Flows Operating Activities-Indirect Method For Current Year Ended December 31 7800 Net Income Adjustment to reconcile net income to net cash provided by operations: Depreciation Decrease in Accounts receivables Increase in Inventory Increase in Prepaid Rent Decrease in prepaid Insurance Decrease in Accounts Payable Increase in Salaries Payable Increase in Utilities Payable Net cash provided by operating activities 21000 2000 -1340 -220 200 -2000 360 2401 20240 28040