Question
Required information Use the following information for the Problems below. [The following information applies to the questions displayed below.] Lansing Companys 2017 income statement and
Required information
Use the following information for the Problems below.
[The following information applies to the questions displayed below.] 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 | $ | 139,200 | ||||
Expenses | ||||||
Cost of goods sold | 56,000 | |||||
Depreciation expense | 19,000 | |||||
Salaries expense | 32,000 | |||||
Rent expense | 10,400 | |||||
Insurance expense | 5,200 | |||||
Interest expense | 5,000 | |||||
Utilities expense | 4,200 | |||||
Net income | $ | 7,400 | ||||
LANSING COMPANY Selected Balance Sheet Accounts | ||||||
At December 31 | 2017 | 2016 | ||||
Accounts receivable | $ | 7,000 | $ | 8,600 | ||
Inventory | 3,380 | 2,240 | ||||
Accounts payable | 5,800 | 7,400 | ||||
Salaries payable | 1,160 | 840 | ||||
Utilities payable | 500 | 300 | ||||
Prepaid insurance | 400 | 560 | ||||
Prepaid rent | 500 | 320 | ||||
Problem 12-1A Indirect: Computing cash flows from operations LO P2
Required information
Use the following information for the Problems below.
[The following information applies to the questions displayed below.] 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 | $ | 139,200 | ||||
Expenses | ||||||
Cost of goods sold | 56,000 | |||||
Depreciation expense | 19,000 | |||||
Salaries expense | 32,000 | |||||
Rent expense | 10,400 | |||||
Insurance expense | 5,200 | |||||
Interest expense | 5,000 | |||||
Utilities expense | 4,200 | |||||
Net income | $ | 7,400 | ||||
LANSING COMPANY Selected Balance Sheet Accounts | ||||||
At December 31 | 2017 | 2016 | ||||
Accounts receivable | $ | 7,000 | $ | 8,600 | ||
Inventory | 3,380 | 2,240 | ||||
Accounts payable | 5,800 | 7,400 | ||||
Salaries payable | 1,160 | 840 | ||||
Utilities payable | 500 | 300 | ||||
Prepaid insurance | 400 | 560 | ||||
Prepaid rent | 500 | 320 | ||||
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.)
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