Income Statement
For Year Ended December 31, 2018
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
LANSING COMPANY
Selected Balance Sheet Accounts |
| At December 31 | 2018 | | 2017 | |
| 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 |
Prepare the cash flows from operating activities section only ofthe company’s 2018 statement of cash flows using thedirect method.
