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.LANSING COMPANYCash Flows from Operating Activities-Direct MethodFor Current Year Ended December 31Cash flows from operating activities Required information[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 andprior years follow.LANSING COMPANYIncome StatementFor Current Year Ended December 31Sales revenueExpensesCost of goods soldDepreciation expenseSalaries expenseRent expenseInsurance expenseInterest expenseUtilities expenseNet incomeAt December 31$ 115,200LANSING COMPANYSelected Balance Sheet AccountsAccounts receivableInventoryAccounts payableSalaries payableUtilities payablePrepaid insurancePrepaid rent48,00015,00024,0009,6004,4004,2003,400$ 6,600Current Year$ 6,2002,5805,0001,000340320340Prior Year$ 7,0001,8405,800760220400240

CASH RECEIVED FROM CUSTOMERS = SALES REVENUES + OPENING ACCOUNTS RECEIVABLE - CLOSING ACCOUNTS…

Answered: operating activities section of the…

Business

Accounting

operating activities section of the statement of cash flows using the direct method for the current year.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 19BEA

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