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 Selected Balance Sheet Accounts
At December 31	2017	2016
Accounts receivable	$5,600	$5,800
Inventory	1,980	1,540
Accounts payable	4,400	4,600
Salaries payable	880	700
Utilities payable	220	160
Prepaid insurance	260	280
Prepaid rent	220	180

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

Required

Prepare the cash flows from operating activities section only of the companys 2017 statement of cash flows using the indirect method.

Check Cash from operating activities, $17,780

Problem 16-2A^B Direct: Computing cash flows from operations P5

Page 706

Refer to the information in Problem 16-1A.

Required

Prepare the cash flows from operating activities section only of the companys 2017 statement of cash flows using the direct method.

Problem 16-3A Indirect: Statement of cash flows A1 P1 P2 P3

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The companys income statement and balance sheets follow.

FORTEN COMPANY Income Statement For Year Ended December 31, 2017
Sales		$582,500
Cost of goods sold		285,000
Gross profit		297,500
Operating expenses
Depreciation expense	$ 20,750
Other expenses	132,400	153,150
Other gains (losses)
Loss on sale of equipment		(5,125)
Income before taxes		139,225
Income taxes expense		24,250
Net income		$114,975

FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016
	2017	2016
Assets
Cash	$ 49,800	$ 73,500
Accounts receivable	65,810	50,625
Inventory	275,656	251,800
Prepaid expenses	1,250	1,875
Total current assets	392,516	377,800
Equipment	157,500	108,000
Accum. depreciationEquipment	(36,625)	(46,000)
Total assets	$513,391	$439,800
Liabilities and Equity
Accounts payable	$ 53,141	$114,675
Short-term notes payable	10,000	6,000
Total current liabilities	63,141	120,675
Long-term notes payable	65,000	48,750
Total liabilities	128,141	169,425
Equity
Common stock, $5 par value	162,750	150,250
Paid-in capital in excess of par, common stock	37,500	0
Retained earnings	185,000	120,125
Total liabilities and equity	$513,391	$439,800

Additional Information on Year 2017 Transactions

The loss on the cash sale of equipment was $5,125 (details in b).

Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.

Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.

Borrowed $4,000 cash by signing a short-term note payable.

Paid $50,125 cash to reduce the long-term notes payable.

Issued 2,500 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $50,100.

Required

Prepare a complete statement of cash flows; report its operating activities using the indirect method. Disclose any noncash investing and financing activities in a note.

Check Cash from operating activities, $40,900

Analysis Component

Analyze and discuss the statement of cash flows prepared in part 1, giving special attention to the wisdom of the cash dividend payment.

Problem 16-4A^A Indirect: Cash flows spreadsheet P1 P2 P3 P4

Page 707

Refer to the information reported about Forten Company in Problem 16-3A.

Required

Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.

Net income was $114,975.

Accounts receivable increased.

Inventory increased.

Prepaid expenses decreased.

Accounts payable decreased.

Depreciation expense was $20,750.

Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. This yielded a loss of $5,125.

Purchased equipment costing $96,375 by paying $30,000 cash and (i.) by signing a long-term note payable for the balance.

Borrowed $4,000 cash by signing a short-term note payable.

Paid $50,125 cash to reduce the long-term notes payable.

Issued 2,500 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $50,100.

Check Analysis of Changes column totals, $600,775

Problem 16-5A^B Direct: Statement of cash flows P1 P3 P5

Refer to Forten Companys financial statements and related information in Problem 16-3A.

Required

Prepare a complete statement of cash flows; report its operating activities according to the direct method. Disclose any noncash investing and financing activities in a note.

Check Cash used in financing activities, $(46,225)

Problem 16-6A Indirect: Statement of cash flows P1 P2 P3

Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The companys balance sheets and income statement follow.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016
	2017	2016
Assets
Cash	$ 164,000	$107,000
Accounts receivable	83,000	71,000
Inventory	601,000	526,000
Total current assets	848,000	704,000
Equipment	335,000	299,000
Accum. depreciationEquipment	(158,000)	(104,000)
Total assets	$1,025,000	$899,000
Liabilities and Equity
Accounts payable	$ 87,000	$ 71,000
Income taxes payable	28,000	25,000
Total current liabilities	115,000	96,000
Equity
Common stock, $2 par value	592,000	568,000
Paid-in capital in excess of par value, common stock	196,000	160,000
Retained earnings	122,000	75,000
Total liabilities and equity	$1,025,000	$899,000

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017
Sales		$1,792,000
Cost of goods sold		1,086,000
Gross profit		706,000
Operating expenses
Depreciation expense	$ 54,000
Other expenses	494,000	548,000
Income before taxes		158,000
Income taxes expense		22,000
Net income		$ 136,000

Page 708

Additional Information on Year 2017 Transactions

Purchased equipment for $36,000 cash.

Issued 12,000 shares of common stock for $5 cash per share.

Declared and paid $89,000 in cash dividends.

Required

Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method.

Check Cash from operating activities, $122,000

Problem 16-7A^A Indirect: Cash flows spreadsheet P1 P2 P3 P4

Refer to the information reported about Golden Corporation in Problem 16-6A.

Required

Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report operating activities under the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.

Net income was $136,000.

Accounts receivable increased.

Inventory increased.

Accounts payable increased.

Income taxes payable increased.

Depreciation expense was $54,000.

Purchased equipment for $36,000 cash.

Issued 12,000 shares at $5 cash per share.

Declared and paid $89,000 of cash dividends.

Check Analysis of Changes column totals, $481,000

Problem 16-8A^B Direct: Statement of cash flows P1 P3 P5

Refer to Golden Corporations financial statements and related information in Problem 16-6A.

Required

Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method.

Check Cash used in financing activities, $(29,000)