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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 $ 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

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

FINANCIAL ACCOUNTING
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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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  
 

 

Problem 16-2AB Direct: Computing cash flows from operations LO P5

Problem 16-2AB Direct: Computing cash flows from operations LO P5 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. (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 Cash flows from operating activities Net income
Transcribed Image Text:Problem 16-2AB Direct: Computing cash flows from operations LO P5 Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. (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 Cash flows from operating activities Net income
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