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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 $ 97,200 Expenses Cost of goods sold. Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income At December 31 LANSING COMPANY Selected Balance Sheet Accounts Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 42,000 12,000 18,000 9,000 3,800 3,600 2,800 $ 6,000 Cash flows from operating activities Current Year Prior Year $ 5,600 $ 5,800 1,980 1,540 4,400 4,600 700 160 280 180 880 220 260 220 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31

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 $ 97,200 Expenses Cost of goods sold. Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income At December 31 LANSING COMPANY Selected Balance Sheet Accounts Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 42,000 12,000 18,000 9,000 3,800 3,600 2,800 $ 6,000 Cash flows from operating activities Current Year Prior Year $ 5,600 $ 5,800 1,980 1,540 4,400 4,600 700 160 280 180 880 220 260 220 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. For Current Year Ended December 31 Sales revenue $ 97,200 Expenses LANSING COMPANY Income Statement Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income At December 31 LANSING COMPANY Selected Balance Sheet Accounts Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 42,000 12,000 18,000 9,000 3,800 3,600 2,800 $ 6,000 Cash flows from operating activities Current Year Prior Year $ 5,600 $ 5,800 1,980 1,540 4,400 4,600 880 220 260 220 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31 700 160 280 180
Transcribed Image Text:Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. For Current Year Ended December 31 Sales revenue $ 97,200 Expenses LANSING COMPANY Income Statement Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income At December 31 LANSING COMPANY Selected Balance Sheet Accounts Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 42,000 12,000 18,000 9,000 3,800 3,600 2,800 $ 6,000 Cash flows from operating activities Current Year Prior Year $ 5,600 $ 5,800 1,980 1,540 4,400 4,600 880 220 260 220 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31 700 160 280 180
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