Lansing Company’s 2017 income statement and selected balance sheet data (for cur
ID: 2600692 • Letter: L
Question
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $ 112,200 Expenses Cost of goods sold 47,000 Depreciation expense 14,500 Salaries expense 23,000 Rent expense 9,500 Insurance expense 4,300 Interest expense 4,100 Utilities expense 3,300 Net income $ 6,500 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2017 2016 Accounts receivable $ 6,100 $ 6,800 Inventory 2,480 1,790 Accounts payable 4,900 5,600 Salaries payable 980 750 Utilities payable 320 210 Prepaid insurance 310 380 Prepaid rent 320 230 Prepare the cash flows from operating activities section only of the company’s 2017 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations
Explanation / Answer
Answer:-
Lansing Company Statement of Cash Flow (Using Indirect Method) For the year ended December,31 2017 Particulars Amount $ $ Net Income 6500 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 14500 Change in opreating assets & liabilities Decrease in Accounts Receiviable (6100-6800) 700 Increase in Inventory (2480-1790) -690 Decrease in Prepaid insurance (310-380) 70 Increase in Prepaid rent (320-230) -90 Increase in salary payable (980-750) 230 Decrease in Accounts payable (4900-5600) -700 Increase in Utilities payable (320-210) 110 Net cash flow from opreating activities 20630Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.