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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
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 | $ | 118,200 | |||||
Expenses | |||||||
Cost of goods sold | 49,000 | ||||||
Depreciation expense | 15,500 | ||||||
Salaries expense | 25,000 | ||||||
Rent expense | 9,700 | ||||||
Insurance expense | 4,500 | ||||||
Interest expense | 4,300 | ||||||
Utilities expense | 3,500 | ||||||
Net income | $ | 6,700 | |||||
LANSING COMPANY Selected Balance Sheet Accounts | |||||||||
At December 31 | Current Year | Prior Year | |||||||
Accounts receivable | $ | 6,300 | $ | 7,200 | |||||
Inventory | 2,680 | 1,890 | |||||||
Accounts payable | 5,100 | 6,000 | |||||||
Salaries payable | 1,020 | 770 | |||||||
Utilities payable | 360 | 230 | |||||||
Prepaid insurance | 330 | 420 | |||||||
Prepaid rent | 360 | 250 | |||||||
Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)
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