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 and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance. Prepaid rent $ 121,200 LANSING COMPANY Selected Balance Sheet Accounts 50,000 16,000 26,000 9,800 4,600 4,400 3,600 $ 6,800 Cash flows from operating activities Current Year $ 6,400 2,780 5,200 1,040 380 340 380 Prior Year $ 7,400 1,940 6,200 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 31 780 240 440 260

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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
2,780
5,200
1,040
Cash flows from operating activities
380
340
380
Prior Year
$ 7,400
LANSING COMPANY
Cash Flows from Operating Activities-Direct Method
For Current Year Ended December 31
1,940
6,200
780
240
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.)
440
260
Transcribed Image Text: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 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 2,780 5,200 1,040 Cash flows from operating activities 380 340 380 Prior Year $ 7,400 LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31 1,940 6,200 780 240 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.) 440 260
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