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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 $ 7,000 Inventory 2,580 1,840 Accounts payable 5,000 5,800 Salaries payable 1,000 760 Utilities payable 340 220 Prepaid insurance 320 400 Prepaid rent 340 240 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.)

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LANSING COMPANY
Cash flow from operating activities- Indirect Method
For the ended december 31
Cash Flow from Operating Activities:
Net Income $     6,600
Adjustments to reconcile net income to net cash provided by operations:
Depreciation expense $ 15,000
Changes in Current operating assets and liabilities
Decrease in accounts receivables $        800
Increase in Inventory $      (740)
Decrease in Accounts Payables $      (800)
Increase in salaries payable $        240
Increase in utilities payable $        120
Decresae in prepaid insurance $          80
Increase in prepaid rent $      (100)
$ 14,600
A. Cash Flow from Operating Activities $ 21,200

ekkarill92 answered 1 year ago
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