Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Lansing Company's 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 $ 103,200 Expenses Cost of goods sold 44,000 Depreciation expense 13,000 Salaries expense 20,000 Rent expense 9,200 Insurance expense 4,000 Interest expense 3,800 Utilities expense 3,000 Net income $ 6,200 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 5,800 $ 6,200 Inventory 2,180 Accounts payable Salaries payable 920 720 Utilities payable 260 180 Prepaid insurance 280 320 Prepaid rent 260 200 1,640 5,000 4,600 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 61,900 77,850 287,656 1,290 428,696 149,500 (40,625) $ 537,571 $ 81,500 58,625 259,800 2,055 401,980 116,000 (50,000) $ 467,980 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 61,141 73,400 134,541 $ 126,675 64,350 191,025 158, 250 174,750 49,500 178,780 $ 537,571 118,705 $ 467,980 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details in b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term notes payable for the balance. d. Paid $49,325 cash to reduce the long-term notes payable. e. Issued 3,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,700. Answer is not complete. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Depreciation expense Loss on disposal of equipment Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable >> s 0 Net cash provided by operating activities Cash flows from investing activities 0 Cash flows from financing activities: Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 s 0 Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31. current year $ 0 Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Lansing Company's 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 $ 103,200 Expenses Cost of goods sold 44,000 Depreciation expense 13,000 Salaries expense 20,000 Rent expense 9,200 Insurance expense 4,000 Interest expense 3,800 Utilities expense 3,000 Net income $ 6,200 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 5,800 $ 6,200 Inventory 2,180 Accounts payable Salaries payable 920 720 Utilities payable 260 180 Prepaid insurance 280 320 Prepaid rent 260 200 1,640 5,000 4,600 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 61,900 77,850 287,656 1,290 428,696 149,500 (40,625) $ 537,571 $ 81,500 58,625 259,800 2,055 401,980 116,000 (50,000) $ 467,980 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 61,141 73,400 134,541 $ 126,675 64,350 191,025 158, 250 174,750 49,500 178,780 $ 537,571 118,705 $ 467,980 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details in b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term notes payable for the balance. d. Paid $49,325 cash to reduce the long-term notes payable. e. Issued 3,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,700. Answer is not complete. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Depreciation expense Loss on disposal of equipment Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable >> s 0 Net cash provided by operating activities Cash flows from investing activities 0 Cash flows from financing activities: Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 s 0 Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31. current year $ 0