Question

In: Accounting

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
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

Problem 16-1A Indirect: Computing cash flows from operations LO P2

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
Cash Flows from Operating Activities—Indirect Method
For Year Ended December 31, 2017
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operations:
0
$0

Solutions

Expert Solution

LANSING COMPANY

Cash Flows from Operating Activities For Year Ended December 31, 2017

(Indirect Method)

Cash flows from operating activities:

Net income                                                                              $ 7,700

Adjustments ;

Depreciation expense                                           $ 20,500

Decrease in Accounts receivable                         $ 1,900

Increase in Inventory                                          ($ 1290)

Decrease in Accounts payable                             ($ 1900)

Increase in Salaries payable                                $ 350

Increase in Utilities payable                                 $ 230

Decrease in Prepaid insurance                            $ 190

Increase in Prepaid rent                                        ($ 210)        $ 19,770

Net cash provided by operating activities                               $ 27,470

ekkarill92 answered 11 months ago
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