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 $ 133,200 Expenses Cost of goods sold 54,000 Depreciation expense 18,000 Salaries expense 30,000 Rent expense 10,200 Insurance expense 5,000 Interest expense 4,800 Utilities expense 4,000 Net income $ 7,200 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,800 $ 8,200 Inventory 3,180 2,140 Accounts payable 5,600 7,000 Salaries payable 1,120 820 Utilities payable 460 280 Prepaid insurance 380 520 Prepaid rent 460 300 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 Cash Flows from Operating Activities—Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities *****Only the blue highlighted boxes in the photo are required for the first box the answer is either (Net Income/ Net Loss) for the middle box as well as the following boxes on the left, the answer options are (Decrease in: accounts payable/receiveable/inventory/prepaid insurance/prepaid rent/salaries payable/utilities payable)(Depreciation expense)(Increase in: inventory/ prepaid insurance/prepaid rent/salaries payable/utilities payable) For the last box the answer options are: (Net cash provided by: investing/operating activities)(Net cash used by: financing/investing/operating activities)

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 $ 133,200 Expenses Cost of goods sold 54,000 Depreciation expense 18,000 Salaries expense 30,000 Rent expense 10,200 Insurance expense 5,000 Interest expense 4,800 Utilities expense 4,000 Net income $ 7,200 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,800 $ 8,200 Inventory 3,180 2,140 Accounts payable 5,600 7,000 Salaries payable 1,120 820 Utilities payable 460 280 Prepaid insurance 380 520 Prepaid rent 460 300 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 Cash Flows from Operating Activities—Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities *****Only the blue highlighted boxes in the photo are required for the first box the answer is either (Net Income/ Net Loss) for the middle box as well as the following boxes on the left, the answer options are (Decrease in: accounts payable/receiveable/inventory/prepaid insurance/prepaid rent/salaries payable/utilities payable)(Depreciation expense)(Increase in: inventory/ prepaid insurance/prepaid rent/salaries payable/utilities payable) For the last box the answer options are: (Net cash provided by: investing/operating activities)(Net cash used by: financing/investing/operating activities)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.17E

See similar textbooks

Related questions

Question

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	$ 133,200
Expenses
Cost of goods sold	54,000
Depreciation expense	18,000
Salaries expense	30,000
Rent expense	10,200
Insurance expense	5,000
Interest expense	4,800
Utilities expense	4,000
Net income	$ 7,200

LANSING COMPANY
Selected Balance Sheet Accounts
At December 31	Current Year	Prior Year
Accounts receivable	$ 6,800	$ 8,200
Inventory	3,180	2,140
Accounts payable	5,600	7,000
Salaries payable	1,120	820
Utilities payable	460	280
Prepaid insurance	380	520
Prepaid rent	460	300

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
Cash Flows from Operating Activities—Indirect Method
For Current Year Ended December 31
Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash

Changes in current assets and current liabilities

*****Only the blue highlighted boxes in the photo are required

for the first box the answer is either (Net Income/ Net Loss)

for the middle box as well as the following boxes on the left, the answer options are (Decrease in: accounts payable/receiveable/inventory/prepaid insurance/prepaid rent/salaries payable/utilities payable)(Depreciation expense)(Increase in: inventory/ prepaid insurance/prepaid rent/salaries payable/utilities payable)

For the last box the answer options are: (Net cash provided by: investing/operating activities)(Net cash used by: financing/investing/operating activities)

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
Cash Flows from Operating Activities-Indirect Method
For Current Year Ended December 31
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Changes in current assets and current liabilities

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

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.