Chapter 12 Question 1:

Lansing Companys 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		$	7,600
Inventory		2,880			1,990
Accounts payable		5,300			6,400
Salaries payable		1,060			790
Utilities payable		400			250
Prepaid insurance		350			460
Prepaid rent		400			270

Required: Prepare the cash flows from operating activities section only of the companys 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 ActivitiesIndirect Method

For Year Ended December 31, 2017

Cash flows from operating activities

:Adjustments to reconcile net income to net cash provided by operations: