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 $ 121,200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income LANSING COMPANY Selected Balance Sheet Accounts At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 50,000 16,000 26,000 9,800 4,600 4,400 3,600 $ 6,800 Current Year $ 6,400 Cash flows from operating activities: 2,780 5,200 1,040 380 340 380 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.) Changes i current assets and current liabilities Net cash provided by financing activities Prior Year $ 7,400 1,940 6,200 LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Current Year Ended December 31 780 240 440 260 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash $

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 $ 121,200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income LANSING COMPANY Selected Balance Sheet Accounts At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 50,000 16,000 26,000 9,800 4,600 4,400 3,600 $ 6,800 Current Year $ 6,400 Cash flows from operating activities: 2,780 5,200 1,040 380 340 380 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.) Changes i current assets and current liabilities Net cash provided by financing activities Prior Year $ 7,400 1,940 6,200 LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Current Year Ended December 31 780 240 440 260 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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