The Lansing Corporation provides you with the following information for the year ended 12/31/24: Sales revenue 450,000 Cost of goods sold 120,000 Gross margin 330,000 Depreciation expense 72,750 Pension expense 28,500 Other expense 38,250 Interest expense 4,500 Gain on the sale of equipment (3,000) Income tax expense 97,500 238,500 Net Income 91.500 12/31/23 12/31/24 Cash 24,000 54,000 Accounts Receivable 75,000 70,500 Inventory 124,500 126,000 Equipment 127,500 123,000 Accumulated Depreciation (9,000) (10,500) Total 342.000 363.000 Accounts Payable 54,000 69,000 Income Taxes Payable 99,000 72,000 Interest Payable 3,000 1,500 Notes Payable, long term 45,000 ° Accrued Pension Liability 6,000 3,000 Deferred Tax Liability 21,000 27,000 Common Stock, no par 105,000 120,000 Retained Earnings 9,000 70,500 Total 342,000 363,000 Additional information: Equipment costing $73,500 was sold for $5,250. New equipment was purchased, and $15,000 of common stock was issued in partial payment for the new equipment. Required: Prepare a Statement of Cash Flows for Lansing Corporation for 2024 using the indirect method. Be sure to disclose the significant non-cash activities and the amount of cash paid for interest and income taxes on the face of the statement.
The Lansing Corporation provides you with the following information for the year ended 12/31/24: Sales revenue 450,000 Cost of goods sold 120,000 Gross margin 330,000 Depreciation expense 72,750 Pension expense 28,500 Other expense 38,250 Interest expense 4,500 Gain on the sale of equipment (3,000) Income tax expense 97,500 238,500 Net Income 91.500 12/31/23 12/31/24 Cash 24,000 54,000 Accounts Receivable 75,000 70,500 Inventory 124,500 126,000 Equipment 127,500 123,000 Accumulated Depreciation (9,000) (10,500) Total 342.000 363.000 Accounts Payable 54,000 69,000 Income Taxes Payable 99,000 72,000 Interest Payable 3,000 1,500 Notes Payable, long term 45,000 ° Accrued Pension Liability 6,000 3,000 Deferred Tax Liability 21,000 27,000 Common Stock, no par 105,000 120,000 Retained Earnings 9,000 70,500 Total 342,000 363,000 Additional information: Equipment costing $73,500 was sold for $5,250. New equipment was purchased, and $15,000 of common stock was issued in partial payment for the new equipment. Required: Prepare a Statement of Cash Flows for Lansing Corporation for 2024 using the indirect method. Be sure to disclose the significant non-cash activities and the amount of cash paid for interest and income taxes on the face of the statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The Lansing Corporation provides you with the following information for the year ended 12/31/24:
Sales revenue
450,000
Cost of goods sold
120,000
Gross margin
330,000
Depreciation expense
72,750
Pension expense
28,500
Other expense
38,250
Interest expense
4,500
Gain on the sale of equipment
(3,000)
Income tax expense
97,500 238,500
Net Income
91.500
12/31/23
12/31/24
Cash
24,000
54,000
Accounts Receivable
75,000
70,500
Inventory
124,500
126,000
Equipment
127,500
123,000
Accumulated Depreciation
(9,000)
(10,500)
Total
342.000
363.000
Accounts Payable
54,000
69,000
Income Taxes Payable
99,000
72,000
Interest Payable
3,000
1,500
Notes Payable, long term
45,000
°
Accrued Pension Liability
6,000
3,000
Deferred Tax Liability
21,000
27,000
Common Stock, no par
105,000
120,000
Retained Earnings
9,000
70,500
Total
342,000
363,000
Additional information:
Equipment costing $73,500 was sold for $5,250. New equipment was purchased, and $15,000 of common stock was issued
in partial payment for the new equipment.
Required: Prepare a Statement of Cash Flows for Lansing Corporation for 2024 using the indirect method. Be sure to disclose the
significant non-cash activities and the amount of cash paid for interest and income taxes on the face of the statement.
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