Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Skip to question [The following information applies to the questions displayed below.] Lansing Companys current-year income statement and selected balance sheet data at
Required information
Skip to question
[The following information applies to the questions displayed below.]
Lansing Companys 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 | $ 112,200 | ||||
Expenses | |||||
Cost of goods sold | 47,000 | ||||
Depreciation expense | 14,500 | ||||
Salaries expense | 23,000 | ||||
Rent expense | 9,500 | ||||
Insurance expense | 4,300 | ||||
Interest expense | 4,100 | ||||
Utilities expense | 3,300 | ||||
Net income | $ 6,500 |
LANSING COMPANY | ||
---|---|---|
Selected Balance Sheet Accounts | ||
At December 31 | Current Year | Prior Year |
Accounts receivable | $ 6,100 | $ 6,800 |
Inventory | 2,480 | 1,790 |
Accounts payable | 4,900 | 5,600 |
Salaries payable | 980 | 750 |
Utilities payable | 320 | 210 |
Prepaid insurance | 310 | 380 |
Prepaid rent | 320 | 230 |
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started