Question

In: Accounting

Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities)...

Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow.

LANSING COMPANY
Income Statement
For Year Ended December 31, 2017
Sales revenue $ 97,200
Expenses
Cost of goods sold 42,000
Depreciation expense 12,000
Salaries expense 18,000
Rent expense 9,000
Insurance expense 3,800
Interest expense 3,600
Utilities expense 2,800
Net income $ 6,000
LANSING COMPANY
Selected Balance Sheet Accounts
At December 31 2017 2016
Accounts receivable $ 5,600 $ 5,800
Inventory 1,980 1,540
Accounts payable 4,400 4,600
Salaries payable 880 700
Utilities payable 220 160
Prepaid insurance 260 280
Prepaid rent 220 180

Required:
Prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow.

LANSING COMPANY
Income Statement
For Year Ended December 31, 2017
Sales revenue $ 97,200
Expenses
Cost of goods sold 42,000
Depreciation expense 12,000
Salaries expense 18,000
Rent expense 9,000
Insurance expense 3,800
Interest expense 3,600
Utilities expense 2,800
Net income $ 6,000

  

LANSING COMPANY
Selected Balance Sheet Accounts
At December 31 2017 2016
Accounts receivable $ 5,600 $ 5,800
Inventory 1,980 1,540
Accounts payable 4,400 4,600
Salaries payable 880 700
Utilities payable 220 160
Prepaid insurance 260 280
Prepaid rent 220 180

Required:
Prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
  

Solutions

Expert Solution

Ans:

CASH FLOW FROM OPERATING ACTIVITIES : indirect method

CASH FLOW FROM OPERATING ACTIVITIES

Net income

6,000

Adjustment to reconcile net income

Depreciation

12,000

Decrease account receivable

2,00

Increase inventory

(4,40)

Decrease account payable

(2,00)

Increase salaries payable

180

Increase utilities payable

60

Decrease prepaid insurance

20

Increase prepaid rent

(40)

NET CASH FLOW FROM OPERATING ACTIVITIES

$ 17,780

DIRECT METHOD :

CASH FLOW FROM OPERATING ACTIVITIES

Cash received from customer (97,200+2,00)

97,400

Cash paid to supplier (42,000+440+200)

(42,640)

Cash paid for salaries (18,000 – 180)

(17,820)

Cash paid for rent (9,000+40)

(9,040)

Cash paid for insurance (3,800-20)

(3,780)

Cash paid for interest

(3,600)

Cash paid for utilities (2,800-60)

(2,740)

NET CASH FLOW FROM OPERATING ACTIVITIES

$ 17,780

ekkarill92 answered 2 months ago
Next > < Previous

Related Solutions

Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $ 124,200 Expenses Cost of goods sold 51,000 Depreciation expense 16,500 Salaries expense 27,000 Rent expense 9,900 Insurance expense 4,700 Interest expense 4,500 Utilities expense 3,700 Net income $ 6,900 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2017 2016 Accounts receivable $ 6,500...
Lansing Company’s 2016 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2016 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2015 and 2016, follow.    LANSING COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue $ 63,000 Expenses Cost of goods sold 19,000 Depreciation expense 5,000 Salaries expense 9,000 Rent expense 2,000 Insurance expense 1,900 Interest expense 1,900 Utilities expense 1,200 Net income $ 23,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2016 2015 Accounts receivable $...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow.
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANYIncome StatementFor Year Ended December 31, 2017 Sales revenue $ 148,200 Expenses     Cost of goods sold   59,000 Depreciation expense   20,500 Salaries expense   35,000 Rent expense   10,700 Insurance expense   5,500 Interest expense   5,300 Utilities expense   4,500 Net income $ 7,700      LANSING COMPANYSelected Balance Sheet Accounts At...
Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current...
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 $ 148,200 Expenses Cost of goods sold 59,000 Depreciation expense 20,500 Salaries expense 35,000 Rent expense 10,700 Insurance expense 5,500 Interest expense 5,300 Utilities expense 4,500 Net income $ 7,700    LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 7,300...
Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current...
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 $ 115,200 Expenses Cost of goods sold 48,000 Depreciation expense 15,000 Salaries expense 24,000 Rent expense 9,600 Insurance expense 4,400 Interest expense 4,200 Utilities expense 3,400 Net income $ 6,600 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,200 $...
Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current...
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 $ 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 Net income $ 6,100    LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 5,700...
Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current...
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 $ 157,200 Expenses Cost of goods sold 62,000 Depreciation expense 22,000 Salaries expense 38,000 Rent expense 11,000 Insurance expense 5,800 Interest expense 5,600 Utilities expense 4,800 Net income $ 8,000    LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 7,600...
Use the following information for the Problems below. Lansing Company’s 2017 income statement and selected balance...
Use the following information for the Problems below. Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $ 148,200 Expenses Cost of goods sold 59,000 Depreciation expense 20,500 Salaries expense 35,000 Rent expense 10,700 Insurance expense 5,500 Interest expense 5,300 Utilities expense 4,500 Net income $ 7,700    LANSING COMPANY Selected Balance Sheet Accounts...
Below is selected balance sheet and income statement information from Fuller Enterprises. 2017 2016 Current assets...
Below is selected balance sheet and income statement information from Fuller Enterprises. 2017 2016 Current assets $ 26,148 $   29,879 Current liabilities 38,063 36,129 Total debt 123,896 125,545 Total Liabilities 206,493 209,242 Equity 76,434 72,613 Earnings before interest and taxes 27,777 27,476 Interest expense 3,180 3,384 Net cash flow from operating activities 18,812 18,620 Compute the current ratio for each year and discuss any trend in liquidity. Compute times interest earned, liabilities-to-equity, and cash from operations to total debt ratios...
Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets Liabilities...
Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets Liabilities and Equity Cash and due from banks $ 9,400 Demand deposits $ 23,000 Investment securities 27,000 NOW accounts 93,000 Repurchase agreements 46,000 Retail CDs 32,000 Loans 94,000 Debentures 23,000 Fixed assets 19,000 Total liabilities $ 171,000 Other assets 4,400 Common stock 12,000 Paid-in capital 4,000 Retained earnings 12,800 Total assets $ 199,800 Total liabilities and equity $ 199,800 Income Statement Interest on fees and...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT