Required information 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 11 Sales revenue Expenses Cost t of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net Income $ 139,200 At December 31 Accounts receivable Inventory Accounts payable Salaries payable Utilities payable Prepaid Insurance Prepaid rent 56,000 19,000 32,000 10,400 1,200 LANSING COMPANY Selected Balance Sheet Accounts Current Year $7,000 3,300 5,000 1,100 500 $ 7,400 Prior Year $8,000 2,240 7,400 blem 16-2AB (Algo) Direct: Computing cash flows from operations LO PS uired: are the operating activities section of the statement of cash flows using the direct method for the current year. Amounts to be deducted should be indicated with a minus sign.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
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
Expenses
Cost of a
goods sold
Depreciation expense
Salaries expense
Rent expense
Insurance expense
Interest expense
Utilities expense
Net income
$ 139,200
At December 31
Accounts receivable
Inventory
Accounts payable
Salarles payable
Utilities payable
Prepaid Insurance
Prepaid rent
LANSING COMPANY
Selected Balance Sheet Accounts
Current Year
56,000
19,000
32,000
10,400
5,200
5,000
4,200
$ 7,400
$7,000
3,180
5,000
1,160
500
400
500
Prior Year
$ 8,000
2,248
7,400
840
300
560
320
Problem 16-2AB (Algo) Direct: Computing cash flows from operations LO PS
Required:
Prepare the operating activities section of the statement of cash flows using the direct method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.
Answer is complete but not entirely correct.
LANSING COMPANY
Transcribed Image Text:Required information 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 Expenses Cost of a goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income $ 139,200 At December 31 Accounts receivable Inventory Accounts payable Salarles payable Utilities payable Prepaid Insurance Prepaid rent LANSING COMPANY Selected Balance Sheet Accounts Current Year 56,000 19,000 32,000 10,400 5,200 5,000 4,200 $ 7,400 $7,000 3,180 5,000 1,160 500 400 500 Prior Year $ 8,000 2,248 7,400 840 300 560 320 Problem 16-2AB (Algo) Direct: Computing cash flows from operations LO PS Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Answer is complete but not entirely correct. LANSING COMPANY
Problem 16-2AB (Algo) Direct: Computing cash flows from operations LO PS
Required:
Prepare the operating activities section of the statement of cash flows using the direct method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.
Answer is complete but not entirely correct.
LANSING COMPANY
Cash Flows from Operating Activities-Direct Method
For Current Year Ended December 31
Cash flows from operating activities
Cash receipts from customers
Cash payments to suppliers
Cash payments for salaries
Cash payments for utilities
Cash payments for rent
Cash payments for insurance
Cash payments for interest
Net cash provided by operating activities
140,800
O 58,740
O 31,000
4.000
000000
O
•
10,500 €
5,040
57,140
$ 307,080
Transcribed Image Text:Problem 16-2AB (Algo) Direct: Computing cash flows from operations LO PS Required: Prepare the operating activities section of the statement of cash flows using the direct method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Answer is complete but not entirely correct. LANSING COMPANY Cash Flows from Operating Activities-Direct Method For Current Year Ended December 31 Cash flows from operating activities Cash receipts from customers Cash payments to suppliers Cash payments for salaries Cash payments for utilities Cash payments for rent Cash payments for insurance Cash payments for interest Net cash provided by operating activities 140,800 O 58,740 O 31,000 4.000 000000 O • 10,500 € 5,040 57,140 $ 307,080
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