80.2K

Verified Solution

Link Copied!

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 LANDING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 100, 200 Expenses Cost of goods sold 43,000 Depreciation expense 12,500 Salaries expense 19,000 Rent expense 9.100 Insurance expense 3,900 Interest expense 3,700 Utilities expense 2.900 set Income $6,100 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 5,700 $ 6,000 Inventory 2,080 1,590 Accounts payable 4,500 4.800 Salories payable 900 710 Utilities payable 240 170 Prepaid insurance 270 Prepaid rent 240 190 300 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.) 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.) 6,100 Answer is complete but not entirely correct. LANSING COMPANY Cash Flows from Operating Activities--Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense $ 12,500 Changes in current assets and current liabilities Decrease in accounts receivable 300 Increase in salaries payable 190 Increase in utilities payable 70 Decrease in prepaid Insurance 30 Increase in inventory 490 Decrease in accounts payable 300 Increase in prepaid Insurance 30 OOOOOO Net cash used by operating activities 13,910 20.010 $ Pro

Answer & Explanation Solved by verified expert

See Answer