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 | $ 154,200 | ||||
|---|---|---|---|---|---|
| Expenses | |||||
| Cost of goods sold | 61,000 | ||||
| Depreciation expense | 21,500 | ||||
| Salaries expense | 37,000 | ||||
| Rent expense | 10,900 | ||||
| Insurance expense | 5,700 | ||||
| Interest expense | 5,500 | ||||
| Utilities expense | 4,700 | ||||
| Net income | $ 7,900 | ||||
| LANSING COMPANY | ||
| Selected Balance Sheet Accounts | ||
| At December 31 | Current Year | Prior Year |
|---|---|---|
| Accounts receivable | $ 7,500 | $ 9,600 |
| Inventory | 3,880 | 2,490 |
| Accounts payable | 6,300 | 8,400 |
| Salaries payable | 1,260 | 890 |
| Utilities payable | 600 | 350 |
| Prepaid insurance | 450 | 660 |
| Prepaid rent | 600 | 370 |
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method for the current year.
Note: Enter amounts to be deducted as negative values.
Solution
