Question

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 $154,200 Expenses Cost of goods sold 61,000 Depreciation expense 21,500 Salaries expense 37,000 Rent expense 10,900 Insurance expense 5,700 Interest expense 5,500 Utilities expense 4,700 Net income $ 7,900 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $7,500 Inventory 3,880 Accounts payable 6,300 Salaries payable 1,260 Utilities payable 600 Prepaid insurance 450 Prepaid rent 600 Prior Year $9,600 2,490 8,400 890 350 660 370

Answer 1

156,300 (64,490) (36,630) (11,130) (5,490) (4,450) (5,500) 28,610 LANSING COMPANY Cash Flows from operating activities - Direct Maethod For Current vear Ended December 31 Cash flows from Operating Activities: Cash received from customers $ Cash paid for suuplies $ Cash paid for Salaries Expenses $ Cash paid for Rent Expenses $ Cash paid for Insurance Expense $ Cash paid for Utilities Expense $ Cash paid for Interest Expenses $ Net Cash flow from operating activities S Working Notes : Cash received from customers Opening balance of accounts Receivables $ Add: Sales Revenue $ $ Less: closing balance of accounts Receivables $ $ Cash paid for suuplies Cost of Goods Sold $ Add: Closing balance of Inventory $ Opening balance of accounts payables $ $ Less: Opening balance of Inventory $ Closing balance of accounts payables $ $ 9,600 154,200 163,800 7,500 156,300 61,000 3,880 8,400 73,280 2,490 6,300 64,490

Cash paid for Salaries Expenses Salaries Expense Opening balance of Salaries payable $ $ $ $ 37,000 890 37,890 1,260 36,630 Closing balance of Salaries payable $ Cash paid for Rent Expenses Rent Expenses Closing balance of Prepaid Rent $ $ $ 10,900 600 11,500 370 11,130 Opening balance of Prepaid Rent $ $ Cash paid for Insurance Expense Insurance Expenses Closing balance of Prepaid Insurance $ $ $ 5,700 450 6,150 660 5,490 Opening balance of Prepaid Insurance $ $ Cash paid for Utilities Expense Utilities Expenses Opening balance of Utilities payable $ $ $ 4,700 350 5,050 600 4,450 Closing balance of Utilities payable $ $