Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lansing company’s current-year income statement

Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current...

Free

50.1K

Verified Solution

Question

Accounting

Lansing Company’s current-year income statement and selectedbalance sheet data at December 31 of the current and prior yearsfollow.

LANSING COMPANY
Income Statement
For Current Year Ended December 31
Sales revenue$157,200
Expenses
Cost of goods sold62,000
Depreciation expense22,000
Salaries expense38,000
Rent expense11,000
Insurance expense5,800
Interest expense5,600
Utilities expense4,800
Net income$8,000

  

LANSING COMPANY
Selected Balance Sheet Accounts
At December 31Current YearPrior Year
Accounts receivable$7,600$9,800
Inventory3,9802,540
Accounts payable6,4008,600
Salaries payable1,280900
Utilities payable620360
Prepaid insurance460680
Prepaid rent620380

Required:
Prepare the operating activities section of the statement of cashflows using the indirect method for the current year.(Amounts to be

Answer & Explanation Solved by verified expert
4.4 Ratings (1062 Votes)

Solution:

LANSING COMPANY
Statement of Cash Flows (Indirect Method)
For the Current Year Ended December 31
Cash flows from operating activities:
Net Income $             8,000
Adjustments to reconcile to operating cash flow
Depreciation expense $           22,000
Changes in operating assets and liabilities:
Decrease in Account Receivables $             2,200
Increase in inventory $           (1,440)
Decrease in accounts payable $           (2,200)
Increase in salaries payable $                 380
Increase in utilities payable $                 260
Decrease in prepaid insurance $                 220
Increase in prepaid rent $              (240)
      Net cash flows from operating activities $          29,180

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Mechanical Engineering
1.2K views

6. The uncut chip thickness for an end-milling application that entails a cutter with brazed inserts is...

Physics
1.2K views

The pV diagram in (Figure 1) shows a cycle of a heat engine that uses 0.250...

Accounting
1.2K views

Mead Motors purchases an automobile for its new car inventory from Generous Motors, which finances this...

Physics
1.2K views

3 2 For the given circuit shown in figure 3 373 in the steady state...

Geometry
1.2K views

Find the volume of the triangular pyramid given the measures shown Show your work here...

Geometry
1.2K views

J B 74 3 a 859 m b 783 m

Basic Math
1.2K views

2 What s the elapsed time between 3 40 A M and 2 00 P...

Calculus
1.2K views

a log4 log 10 000 log 32 4 marks

Accounting
1.2K views

1.The standard costs and actual costs for direct materials for the manufacture of 1,000...

Accounting
1.2K views

2019 Amna owns undeveloped land with an adjusted basis of $137,500....

Accounting
1.2K views

Please provide your answers to the following questions: 1. Distinguish between additions and improvements/replacements. How...

Accounting
1.2K views

What is the AICPA Code of Professional Conduct and how does it affect CPAs?