Lansing Company\'s 2016 income statement and selected balance sheet data (for cu

Question

Lansing Company's 2016 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2015 and 2016, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue Expenses 63,000 Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense 18,000 4,500 9,000 2,500 1,700 1,400 1.200 $24,700 Net income LANSING COMPANY Selected Balance Sheet Accounts At December 31 Accounts Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 2016 2015 S 3,700 3,810 950 804 1,100 1,180 270 120 80 150 170 50 110 390 Required Prepare the cash flows from operating activities section only of the company's 2016 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 :

Net income 24700 Adjustment to reconcile net income to cash flow from operating activiites Depreciation expense 4500 Decrease account receivable 110 Increase inventory -146 Decrease account payable -80 Increase salary payable 120 Increase utilities payable 40 Decrease prepaid insurance 20 Increase prepaid rent -40 4524 Net cash flow from operating activities 29224

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