Lansing Company’s 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015 follow. Lansing Company Selected Balance Sheet Accounts At December 31 2015 2014 Accounts Receivable $5,600 $5,800 Inventory 1,980 1,540 Accounts Payable 4,400 4,600 Salaries Payable 880 700 Utilities Payable 220 160 Prepaid Insurance 260 280 Prepaid Rent 220 180 Lansing Company Income Statement For Year Ended December 31, 2015 Sales Revenue $97,200 Expenses: Cost of goods sold 42,000 Depreciation expense 12,000 Salaries expense 18,000 Rent expense 9,000 Insurance expense 3,800 Interest expense Utilities expense Net Income 3,600 2,800 $ 6,000 Additional Information: Lansing bought an equipment for $8,000. Lansing sold an old furniture for $1,500 Lansing paid out dividends to shareholders for $7,000. Lansing sold 1000 shares for $6,500 dollars to investors. Lansing issued bonds for $4,500 to investors Lansing bought a truck for $9,700 Retired a debt of $3,000 by issuing shares to investment. Lansing issued a noninterest-bearing 5-year $2,400 note for acquisition of a machine. Required: Prepare the company’s 2015 statement of cash flows using the indirect method. Prepare the cash flows from operating activities section only of the company’s 2015 statement of cash flows using the direct met
Lansing Company’s 2015 income statement and selected
Lansing Company
Selected Balance Sheet Accounts
|
At December 31 |
2015 |
2014 |
|
|
$5,600 |
$5,800 |
|
Inventory |
1,980 |
1,540 |
|
Accounts Payable |
4,400 |
4,600 |
|
Salaries Payable |
880 |
700 |
|
Utilities Payable |
220 |
160 |
|
Prepaid Insurance |
260 |
280 |
|
Prepaid Rent |
220 |
180 |
Lansing Company
Income Statement
For Year Ended December 31, 2015
|
Sales Revenue |
$97,200 |
|
Expenses: |
|
|
Cost of goods sold |
42,000 |
|
|
12,000 |
|
Salaries expense |
18,000 |
|
Rent expense |
9,000 |
|
Insurance expense |
3,800 |
|
Interest expense Utilities expense Net Income |
3,600 2,800 $ 6,000 |
Additional Information:
-
Lansing bought an equipment for $8,000.
-
Lansing sold an old furniture for $1,500
-
Lansing paid out dividends to shareholders for $7,000.
-
Lansing sold 1000 shares for $6,500 dollars to investors.
-
Lansing issued bonds for $4,500 to investors
-
Lansing bought a truck for $9,700
-
Retired a debt of $3,000 by issuing shares to investment.
-
Lansing issued a noninterest-bearing 5-year $2,400 note for acquisition of a machine.
Required:
-
Prepare the company’s 2015 statement of
cash flows using the indirect method. -
Prepare the cash flows from operating activities section only of the company’s 2015 statement of cash flows using the direct method.
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