The document provides financial information for Lansing Company for 2013. It includes an income statement showing revenues of $97,200 and net income of $6,000. It also lists selected balance sheet accounts as of December 31, 2012 and 2013. The required task is to prepare the cash flows from operating activities section of the 2013 statement of cash flows using the indirect method, which is provided in the solution.

1. ash from operating Check activities, $17780 Lansing Company's 2013 income statement and
selected balance sheet data at December 31, 2012 and 2013, follow. LANSING coMPANy
Income Statement For Year Ended December 31, 2013 $97,200 LANSING COMPANY Sales
revenue Selected Balance Sheet Accounts Expenses 42,000 Cost of goods sold 2013 2012 At
December 3 Depreciation expense 12,000 Accounts receivable $5,600 $5,800 8,000 Salaries
expense 980 540 Inventory r 9,000 Rent expense Accounts payable 4,400 4,600 3,800 Insurance
expense Salaries payable 880 700 3,600 Interest expense Utilities payable 60 220 2,800 Utilities
expense Prepaid insurance 260 280 6000 Net income Prepaid rent 220 80 Required Prepare the
cash flows from operating activities section only of the company's 2013 statement of cash flows
using the indirect method.
Solution
Statement of Cash Flows Particulars Amount Amount Opening cash and Cash Equivalents Cash
Flow from Operating Activities Net Income           6,000.00 Add :
Depreciation         12,000.00 Add decrease in AR
              200.00 Less : Increase in Inv            Â
(440.00) Less inc in prepaid exp Less Dec in Accounts payable            Â
(200.00) Add inc in sal payable               180.00 Add inc in Utilities
payable                 60.00 Add Dec in prepaid ins
                20.00 Less Inc in Prepaid rent
              (40.00) Cash Flow from Operating Activities 17,780