Question
In: Accounting
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 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 |
||||||
| At December 31 | 2017 | 2016 | ||||
| Accounts receivable | $ | 7,300 | $ | 9,200 | ||
| Inventory | 3,680 | 2,390 | ||||
| Accounts payable | 6,100 | 8,000 | ||||
| Salaries payable | 1,220 | 870 | ||||
| Utilities payable | 560 | 330 | ||||
| Prepaid insurance | 430 | 620 | ||||
| Prepaid rent | 560 | 350 | ||||
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.)
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Solutions
Expert Solution
| Operating Activities of the Cash Flow Statement of Lansing Ltd for the year ended Dec 31, 2017 | |
| Particulars | Amount |
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Profit before tax | $7,700 |
| Adjustments to reconcile profit before tax to cash provided by operating activities | |
| Depreciation and amortisation expense | $20,500 |
| OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES | $28,200 |
| (Increase) / Decrease in current assets | |
| Accounts Receivables Decrease | $1,900 |
| Inventories (Increase) | -$1,290 |
| Prepaid Rent (Increase) | -$210 |
| Prepaid Insurance Decrease | $190 |
| Increase / (Decrease) in current liabilities | |
| Accounts Payable (Decrease) | -$1,900 |
| Salaries Payable Increase | $350 |
| Utilities Payable Increase | $230 |
| NET CASH GENERATED /(USED) BY OPERATING ACTIVITIES | $27,470 |
ekkarill92 answered 2 years agoRelated Solutions
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)...
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 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...
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...
Jafan Retailing, Balance Sheet Statement December 31, 2016 & December 31, 2017 2016 2017 Cash $ ...
Jafan Retailing, Balance Sheet
Statement December 31, 2016 & December 31, 2017
2016
2017
Cash
$ 235,000
$ 400,000
Accounts Receivable
367,200
325,000
Inventory
450,000
500,200
Prepaid Expenses
120,000
160,000
Long-term investment
100,000
300,000
Equiptment (Net)
1,050,000
1,125,000
Total Assets
$ 2,322,200
$ 2,810,200
Accounts Payable
$ 421,000
$ 411,000
Salary Payable
134,000
180,000
Interest Payable
110,000
112,000
Bonds Payable
550,000
560,000
Common Shares...
Ratios (Appendix) Miller Company's condensed income statement for 2016 and December 31, 2016, balance sheet follow:...
Ratios (Appendix)
Miller Company's condensed income statement for 2016 and
December 31, 2016, balance sheet follow:
Income Statement
Sales (net)
$304,400
Cost of goods sold
(183,600)
Gross profit
$120,800
Operating expenses
(82,000)
Operating income
$38,800
Interest expense
(7,000)
Income before income taxes
$31,800
Income taxes
(10,000)
Net income
21,800
Balance Sheet
Cash
$8,200
Accounts payable
$18,000
Receivables (net)
14,700
Other current liabilities
6,800
Inventory
19,300
Bonds payable, 10%
70,000
Property, plant, and equipment (net)
195,800
Common stock, $10 par
80,500...
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