Chapter 12 Question 1:

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

ExpensesCost of goods sold51,000

Depreciation expense16,500

Salaries expense27,000

Rent expense9,900

Insurance expense4,700

Interest expense4,500

Utilities expense3,700

Net income$6,900

LANSING COMPANY

Selected Balance Sheet AccountsAt

December 31 20172016

Accounts receivable $6,500$7,600

Inventory 2,8801,990

Accounts payable 5,3006,400

Salaries payable 1,060790

Utilities payable 400250

Prepaid insurance 350460

Prepaid rent 400270

Required:

Prepare the cash flows from operating activities section only of the company's 2017 statement of cash flows using theindirect method.(Amounts to be deducted should be indicated with a minus sign.)