Lansing Company\'s 2015 income statement and selected balance sheet data (for cu
ID: 2522625 • Letter: L
Question
Lansing Company's 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015, ollow. 2.5 points LANSING COMPANY Income Statement For Year Ended December 31, 2015 64,000 21,000 Depreciation expense 5,000 02:0602 Sales revenue Expenses Cost of goods sold Salaries expense Rent expense Insurance expense Interest expense Utilities expense 12,000 2,000 1,900 Print 1,400 1,200 References Net income $ 19,500 LANSING COMPANY Selected Balance Sheet Accounts 2015 2014 $3,900 $4,030 850 759 400 290 At December 31 Accounts receivable Inventory Accounts payable1,300 1,410 Salaries payable Utilities payable Prepaid insurance Prepaid rent 110 80 100110 100 70 Required: Prepare the cash flows from operating activities section only of the company's 2015 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)Explanation / Answer
Cash flow from operating activities under indirect method :
Net income 19500 Adjustment to reconcile net income Depreciation expense 5000 Decrease account receivable 130 Increase inventory -91 Decrease account payable -110 Increase salary payable 110 Increase utilities payable 30 Decrease prepaid insurance 10 Increase prepaid rent -30 5049 Net cash flow from operating activities 24549Related Questions
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