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 $ 127,200 Expenses Cost of goods sold 52,000 Depreciation expense 17,000 Salaries expense 28,000 Rent expense 10,000 Insurance expense 4,800 Interest expense 4,600 Utilities expense 3,800 Net income $ 7,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,600 $ 7,800 Inventory 2,980 2,040 Accounts payable 5,400 6,600 Salaries payable 1,080 800 Utilities payable 420 260 Prepaid insurance 360 480 Prepaid rent 420 280 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’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 $ 127,200 Expenses Cost of goods sold 52,000 Depreciation expense 17,000 Salaries expense 28,000 Rent expense 10,000 Insurance expense 4,800 Interest expense 4,600 Utilities expense 3,800 Net income $ 7,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,600 $ 7,800 Inventory 2,980 2,040 Accounts payable 5,400 6,600 Salaries payable 1,080 800 Utilities payable 420 260 Prepaid insurance 360 480 Prepaid rent 420 280 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1.3
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 | $ 127,200 |
|---|---|
| Expenses | |
| Cost of goods sold | 52,000 |
| 17,000 | |
| Salaries expense | 28,000 |
| Rent expense | 10,000 |
| Insurance expense | 4,800 |
| Interest expense | 4,600 |
| Utilities expense | 3,800 |
| Net income | $ 7,000 |
| LANSING COMPANY | ||
| Selected Balance Sheet Accounts | ||
| At December 31 | Current Year | Prior Year |
|---|---|---|
| $ 6,600 | $ 7,800 | |
| Inventory | 2,980 | 2,040 |
| Accounts payable | 5,400 | 6,600 |
| Salaries payable | 1,080 | 800 |
| Utilities payable | 420 | 260 |
| Prepaid insurance | 360 | 480 |
| Prepaid rent | 420 | 280 |
Required:
Prepare the operating activities section of the statement of
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