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 $ 121,200 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 LANSING COMPANY Selected Balance Sheet Accounts Current Year $ 6,400 2,780 5,200 1,040 380 340 380 Prior Year $ 7,400 1,940 6,200 780 240 440 260 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'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 $ 121,200 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 LANSING COMPANY Selected Balance Sheet Accounts Current Year $ 6,400 2,780 5,200 1,040 380 340 380 Prior Year $ 7,400 1,940 6,200 780 240 440 260 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.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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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
At December 31
Accounts receivable
LANSING COMPANY
Selected Balance Sheet Accounts
Inventory
Accounts payable
Salaries payable
Utilities payable
Prepaid insurance
Prepaid rent
Cash flows from operating activities:
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
380
340
380
c?
Changes in current assets and current liabilities
Prior Year
$ 7,400
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.)
1,940
6,200
LANSING COMPANY
Cash Flows from Operating Activities-Indirect Method
For Current Year Ended December 31
780
240
440
260
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f3f54c4-95c2-4374-8a15-52c156a3a27b%2F87430d3f-5da8-4755-b175-27efbeae27b1%2Fl376mlg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
At December 31
Accounts receivable
LANSING COMPANY
Selected Balance Sheet Accounts
Inventory
Accounts payable
Salaries payable
Utilities payable
Prepaid insurance
Prepaid rent
Cash flows from operating activities:
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
380
340
380
c?
Changes in current assets and current liabilities
Prior Year
$ 7,400
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.)
1,940
6,200
LANSING COMPANY
Cash Flows from Operating Activities-Indirect Method
For Current Year Ended December 31
780
240
440
260
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
![uning invitation uppines in on YOUJOVIS
ed below.]
Company's current-year income statement and
1 balance sheet data at December 31 of the current
ir years follow.
LANSING COMPANY
Income Statement
Current Year Ended December 31
revenue
¡es
of goods sold
eciation expense
iries expense
: expense
irance expense
rest expense
ities expense
Icome
tember 31
its receivable
LANSING COMPANY
Selected Balance Sheet Accounts
cory
its payable
Les payable.
ties payable
d insurance
id rent
$ 121,200
50,000
16,000
26,000
9,800
4,600
4,400
3,600
$ 6,800
operating activities:
Current Year Prior Year
$ 6,400
$ 7,400
2,780
5,200
1,040
380
340
380
ent assets and current liabilities
1,940
6,200
e operating activities section of the statement of
using the indirect method for the current year.
to be deducted should be indicated with a minus
780
240
440
260
LANSING COMPANY
Cash Flows from Operating Activities-Indirect Method
For Current Year Ended December 31
econcile net income to net cash provided by operations:
nt items not affecting cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f3f54c4-95c2-4374-8a15-52c156a3a27b%2F87430d3f-5da8-4755-b175-27efbeae27b1%2Fjtkb4t7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:uning invitation uppines in on YOUJOVIS
ed below.]
Company's current-year income statement and
1 balance sheet data at December 31 of the current
ir years follow.
LANSING COMPANY
Income Statement
Current Year Ended December 31
revenue
¡es
of goods sold
eciation expense
iries expense
: expense
irance expense
rest expense
ities expense
Icome
tember 31
its receivable
LANSING COMPANY
Selected Balance Sheet Accounts
cory
its payable
Les payable.
ties payable
d insurance
id rent
$ 121,200
50,000
16,000
26,000
9,800
4,600
4,400
3,600
$ 6,800
operating activities:
Current Year Prior Year
$ 6,400
$ 7,400
2,780
5,200
1,040
380
340
380
ent assets and current liabilities
1,940
6,200
e operating activities section of the statement of
using the indirect method for the current year.
to be deducted should be indicated with a minus
780
240
440
260
LANSING COMPANY
Cash Flows from Operating Activities-Indirect Method
For Current Year Ended December 31
econcile net income to net cash provided by operations:
nt items not affecting cash
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