Lansing Company's 2017 income statement and selected balance sheet data (for current assets and current liabilities) as of December 31, 2016 and 2017, below.

 LANSING COMPANY Income statement for the year ended December 31, 2017 Sales revenue $124,200 Expenses Cost of goods sold 51,000 Depreciation expense 16,500 Salary expense 27,000 Rental expense 9,900 Insurance expense 4,700 Interest expense 4,500 Utility expense 3,700 Net income $6,900 LANSING COMPANY Selected balance sheet accounts at December 31, 2017 2016 Accounts receivable $6,500 $7,600 Inventory 2,880 1,990 Accounts payable 5,300 6,400 Wages payable 1, 060 790 Utilities payable 400 250 Insurance paid in advance 350 460 Rentals paid in advance 400 270 cash flows by the indirect method. (The amounts to be deducted must be indicated with a minus sign). 

Required: 

Prepare the cash flows from operating activities only section of the company's 2017 statement of cash flows using the direct method. (The amounts to be deducted must be indicated with a minus sign).

Answer rating: 100% (QA)

To prepare the cash flows from operating activities using the direct method we need to analyze the c... View the full answer