Refer to the information in Problem 12-1A. Lansing Company's 2016 income statement and selected balance sheet data

Question:

Refer to the information in Problem 12-1A.

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

Selected Balance Sheet Accounts

At December 31 _________2016 _________2015

Accounts receivable . . . . . . $5,600 .......... $5,800

Inventory . . . . . . . . . . . . . . . 1,980 ............1,540

Accounts payable . . . . . . . . 4,400 .............4,600

Salaries payable . . . . . . . . . . 880 ................700

Utilities payable . . . . . . . . . . 220 ................160

Prepaid insurance . . . . . . . . 260 .................280

Prepaid rent . . . . . . . . . . . . 220 .................180

LANSING COMPANY

Income Statement

For Year Ended December 31, 2016

Sales revenue . . . . . . . . . . . . . . . . . . $97,200

Expenses

Cost of goods sold . . . . . . . . . . . . . . .42,000

Depreciation expense . . . . . . . . . . . . .12,000

Salaries expense . . . . . . . . . . . . . . . . 18,000

Rent expense . . . . . . . . . . . . . . . . . . . 9,000

Insurance expense . . . . . . . . . . . . . . . .3,800

Interest expense . . . . . . . . . . . . . . . . . 3,600

Utilities expense . . . . . . . . . . . . . . . . . 2,800

Net income . . . . . . . . . . . . . . . . . . . .$ 6,000

Required

Prepare the cash flows from operating activities section only of the company's 2016 statement of cash flows using the direct method?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...