Refer to the information in Problem 16-1A.

Required

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

Data From Problem 16-1A

Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow.

Required

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

Transcribed Image Text:

LANSING COMPANY Income Statement For Current Year Ended December 31 LANSING COMPANY Sales revenue . $97,200 Selected Balance Sheet Accounts Expenses Cost of goods sold .. Depreciation expense. Salaries expense.. At December 31 Current Year Prior Year 42,000 12,000 Accounts receivable.... $5,600 $5,800 Inventory..... 1,980 1,540 18,000 Rent expense 9,000 Accounts payable .. Salaries payable .. Utilities payable 4,400 4,600 880 700 Insurance expense 3,800 220 160 Interest expense. 3,600 Prepaid insurance. 260 Utilities expense. 2,800 280 Prepaid rent 220 Net income $ 6,000 180 ...