Lansing Company\'s 2016 income statement and selected ted balance sheet data (to
ID: 2560299 • Letter: L
Question
Lansing Company's 2016 income statement and selected ted balance sheet data (tor current assets and current lablities) at December 31, 2015 and 2018, tolow. Assume all sale as creds data sales, all purchases of inventory are on credit LANSING COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue Expenses 97 200 Cost of goods sold Depreciabon expense Salares expense Rent expense Insurance expense Interest expense Utiies expense 42,000 12,000 18,000 ,000 3 800 3,600 2 800 s 6,000 Net income LANSING COMPANY Selected Balance Sheet Accounts ember 31 10 Accounts payable Salaries payable Utities payable Prepad insurance Prepad rent 800 1,980 1,540 4400 4 600 880 700 220 160 260 280 220 180Explanation / Answer
cash flow from customers =Opening account receivable+sales-closing receivable=5800+97200-5600=97400
cash payment to suppliers for that we have to calculate the purchase first
COGS=Opening stock+purchase-closing stock
42000=purchase+1540-1980
purchase=42000+1980-1540=42440
cash payment to creditors=Purchase +account payable opening-closing account payable=42440+4600-4400=-42640
cash payment of interest =-3800
Cash payment of rent= Rent charged in Income staement+Prepaid current year-Prepaid last year=9000+220-180=-9040
cash payment for insurance=Insurance charged in Income staement+Prepaid current year-Prepaid last year=3800+200-280=-3720
cash payment of utilities= Utilities charged in income statement+Outstanding last year-Outstanding current year=2800+160-220=-2740
Salaries paid in cash=Salaries charged in income statement+Outstanding last year-Outstanding current year=18000+700-880=-17820
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