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 $ 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 2017 2016 Accounts receivable $ 5,700 $ 6,000 Inventory 2,080 1,590 Accounts payable 4,500 4,800 Salaries payable 900 710 Utilities payable 240 170 Prepaid insurance 270 300 Prepaid rent 240 190

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.)

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.)

Solutions

Expert Solution

Solution:
Income statement of Lansing Company for the Year December 31, 2017 :
Sales Revenue             (A) $ 100200
Less: Expenses:
Cost of Goods sold $ 43000
Depreciation Expense $ 12500
Salaries $ 19000
Rent expense $ 9100
Insurance expense $ 3900
Interest expense $ 3700
Utilities expense $ 2900
Total Expenses   (B) $ 94100
Net Income $ 6100
Balance sheet of Lansing Company :
2017 2016
Account Receivable 5700 6000
Inventory 2080 1590
Accounts Payable 4500 4800
Salaries Payable 900 710
Utilities Payable 240 170
Prepaid insurance 270 300
Prepaid Rent 240 190
Lansing Company
Cash Flows from Operating Activities- Indirect Method For the Year ended December 31, 2017
Cash Flow From Operating Activities: Working:
Net Income $ 6100
Adjustment to reconcile net income to net Cash provided by operations:
Depreciation Expense $ 12500
Decrease In Accounts Receivable $ 300 (6000-5700)
Increase In Inventory $ -490 (1590-2080)
Decrease In Accounts Payable $ -300 (4800-4500)
Increase In Salary Payable $ 190 (710-900)
Increase In Utilities Payable $ 70 (170-240)
Decrease In Prepaid insurance $ 30 (300-270)
Increase In Prepaid Rent $ -50 12250 (190-240)
Net Cash provided by Operating Activities $ 18350
Net Cash provided by Operating Activities = $18350

ekkarill92 answered 3 days 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 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...
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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT