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 COMPANYCash Flows from Operating Activities-Direct MethodFor Current Year Ended December 31Cash flows from operating activities Required information[The following information applies to the questions displayed below.]Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current andprior years follow.LANSING COMPANYIncome StatementFor Current Year Ended December 31Sales revenueExpensesCost of goods soldDepreciation expenseSalaries expenseRent expenseInsurance expenseInterest expenseUtilities expenseNet incomeAt December 31$ 115,200LANSING COMPANYSelected Balance Sheet AccountsAccounts receivableInventoryAccounts payableSalaries payableUtilities payablePrepaid insurancePrepaid rent48,00015,00024,0009,6004,4004,2003,400$ 6,600Current Year$ 6,2002,5805,0001,000340320340Prior Year$ 7,0001,8405,800760220400240

CASH RECEIVED FROM CUSTOMERS = SALES REVENUES + OPENING ACCOUNTS RECEIVABLE - CLOSING ACCOUNTS…

Answered: operating activities section of the…

Business

Accounting

operating activities section of the statement of cash flows using the direct method for the current year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Prepare the net cash provided by operating activities section of the company's statement of cash…

A: Meaning of Cash from Operating Activities Cash from operating activities is a part of Cash Flow…

Q: Cash, beginning of the year Operating Activity Net Income Plus: Depreciation Cortland, Inc. Cash…

A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…

Q: Required: Using above line items, prepare Pool Corporation's statement of cash flows for the year…

A: A cash flow statement is a statement that shows the cash inflow or, outflow of the entity under…

Q: An analysis of comparative balance sheets, the current year’s income statement, and the general…

A: The cash flows statement shows the cash inflows and cash outflows from the organization. different…

Q: Smith Enterprises reports the following information: Net income Depreciation expense Increase in…

A: Statement of Cash Flow -Statement of cash flow includes inflow and outflow of cash during the…

Q: Exercise 16-6 (Algo) Indirect: Cash flows from operating activities LO P2 Salud Company reports the…

A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…

Q: From the Dec. 31, 2018, balance sheet, changes from prior year: $ 7,600 3,200 (2,000) (4,000) 1,900…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Identify whether each of the following would be reported as an operating, investing, or financing…

A: Cash flow from financing activities: Under the cash flow from financing activities of a cash flow…

Q: Lansing Company's current-year income statement and selected balance sheet data at December 31 of…

A: Under Direct method of Cash Flow Statement, cash flows from receipts and payments made for the…

Q: Current assets: Cash and cash equivalents Accounts Receivable Inventory Total current assets…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Use the following financial statements and additional information. ARNOLD INCORPORATED Comparative…

A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…

Q: Washington Company is preparing its statement of cash flows using the indirect method. Refer to the…

A: A cash flow statement is a part of financial statements to show the cash movement in different…

Q: Forten Company's current year income statement, comparative balance sheets, and additional…

A: A cash flow financial statement that outlines a company's cash inflows from operations to pay…

Q: Please use the 2nd pic for proper form

A: Workings :- 1) Calculation of depreciation :- Accumulated depreciation 2019 - accumulated…

Q: The current period statement of cash flows includes the following: Cash balance at the beginning of…

A: To examine its cash position, the organization creates cash flow statements. The entity's cash flows…

Q: cash balance at the end of the period is

A: The cash balance at the ending of the year is computed in the following manner : Cash balance at the…

Q: To complete the operating activities section of the statement of cash flows using the indirect…

A: INDIRECT METHOD OF CASH FLOW STATMENT In order to determine the amount of cash created by…

Q: The net income reported on the income statement for the current year was $73,600. Depreciation…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Required: Prepare the operating activities section of the statement of cash flows using the indirect…

A: Cashflow statements are prepared to know the changes that happen in the cash balance over a period…

Q: Sales Cost of goods sold Gross profit Operating expenses salaries expense Depreciation expense Rent…

A: Cash flow from operating activities is a financial metric that represents the amount of cash…

Q: Compute the partial statement of cash flows for the year ended December 31, 2018, s computation of…

A: Solution: Introduction: Ruthorford Corporation Cash Flows from operating activities will be…

Q: The following income statement and additional year-end information is provided. SONAD COMPANY Income…

A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…

Q: What adjustment(s) should be made to reconcile net income to net cash flows from operating…

A: Using the indirect method, the changes in net working capital accounts needs to be adjusted to net…

Q: An analysis of comparative balance sheets, the current year’s income statement, and the general…

A: Cash flow statement is the statement prepared to show the flow of cash in the entity during the…

Q: The income statement of Windsor Company is shown below. WINDSOR COMPANY INCOME STATEMENT FOR THE…

A: The Income Statement for the year ended 31st December 2020 is given. Required Prepare Operating…

Q: Create a cash flow statement to find the following: Cash beginning of the year Operating Activity…

A: Cash flows statement is one of the financial statement being prepared in company. It shows all cash…

Q: Determine the net cash flows from used for investing activities for the year.

A: Cash flow from investing activities includes the cash receipts and cash payments for the purpose of…

Q: se the following information from Dubuque Company’s financial statements to prepare the operating…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Selected data derived from the income and balance sheet of National Beverage Co. for a recent year…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: Determining Cash Flows from (Used for) Operating Activities Yeoman Inc. reported the following data:…

A: HERE CASH FLOW FROM OPERATING ACTIVITIES IS CALCULATED BY ADJUSTING THE NON CASH EXPENSES AND TAKING…

Q: Using the indirect method, prepare the cash flows provided by operating activities section of the…

A: CASH FLOWS FROM OPERATING ACTIVITIES Cash Flows From Operating Activities is a section of Statement…

Q: [The following information applies to the questions displayed below.] Lansing Company's current-year…

A: LANSING COMPANY Cash flows from operating…

Q: depreciation is deducted from net profit for the year income tax expense is added back to net…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: classification of the changes below into Operating, investing and financing activities for statement…

A: The Numerical Has Covered the concept of cash flow statement . The Cash flow Statement has divided…

Q: Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1…

A: Let's break down the calculation of the cash flow on total assets ratio step by step with detailed…

Concept explainers

Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.

Question

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
Cash flows from operating activities

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: COMPUTATION OF CASH RECEIVED FROM CUSTOMERS AND CASH PAID TO SUPPLIERS :

VIEW

Step 2: CALCULATION OF AMOUNT PAID TO EXPENSES DURING THE YEAR :

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Assets Current assets: Cash and cash equivalents Accounts receivable. Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment. Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities. Income taxes payable Total current liabilities Bonds payable Total liabilities. Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income. Nonoperating items: Gain on sale of equipment Income before taxes. Income taxes Net income Burgess also provided the following information: $ 4,180 2,860 1,320 912 408 2 410 144 $ 266…
Portions of the financial statements for Alliance Technologies are provided bel ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $375,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $220,000 67,000 16,700 25,500 329, 200 $ 45,800 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable $ 6,700 13,700 9,700 5,700 8,700 22,800
Jaan
Use the following information from Dubuque Company’s financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
Highlight the Net cash provided by Operating Activities for the Statement of Cash Flows Highlight the Net cash provided by Financing Activities for the Statement of Cash Flows Highlight the net change in cash for the period on the Statement of Cash Flows
Given the items below, which of the following is a subtraction from net income to arrive at operating cash flows using the indirect method? I. Loss on sale of assets II. Increase in Supplies III. Increase in Accounts Payable IV. Depreciation expense
What is Target’s balance of cash equivalents for the fiscal year ended January 30,2016?
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year $23,500 56,000 35,500 4,750 21,800 4,900 Beginning of Year $18,700 48,000 40,000 7,000 16,800 5,800 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash
Use the above information to prepare a statement of cash flows for the current year using the indirect method
Using the information from below make a statement of cash flows for the year ended december 31, 2020 using the direct method.
Distribution lines on a journal entry are also shown on the Statement of Cash Flows. True or False
How would you prepare a statement of Cash Flows using the following information? Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/Decrease Assets Cash and cash Equivalent $ 51,500.00 $ 45,400.00 $ 6,100.00 Accounts Receivable $ 51,100.00 $ 61,400.00 $ 10,000.00 Inventories $ 61,400.00 $ 51,900.00 $ 9,500.00 Fixed Assets, net $ 160,000.00 $ 110,000.00 $ 50,000.00 Total Assets $ 324,000.00 $ 268,700.00 $ 55,600.00 Liabilities Accounts Payable $ 35,450.00 $ 27,800.00 $ 7,650.00 Accrued liabilities $ 31,000.00 $ 37,550.00 -$ 6,550.00 Long-term notes payable $ 60,000.00 $ 78,540.00 -$ 18,540.00 Stockholders Equity: Common Stock $ 143,050.00 $ 105,110.00 $ 37,940.00 Retained Earnings $ 54,800.00 $ 19,700.00 $…