Bensen Company started business by acquiring $26,900 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $26,900 that had a $4,500 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,950 cash. Bensen uses straight-line depreciation. Revenue Year 1 $ 7,820 Year 2 $8,320 Year 3 $ 8,520 Year 4 $ 7,320 Year 5 $ 0 Required Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each of the five years. Complete this question by entering your answers in the tabs below. Statement of Income Statement Changes in Balance Sheet Stockholders Statement of Cash Flows Prepare the statements of cash flows for each of the five years. Note: Amounts to be deducted and cash outflows should be indicated by a minus sign. Operating activities: Inflow from customers Outflow for customers Net cash flow from operating activities Investing activities: Net cash flow from investing activities Financing activities: Net cash flow from financing activities BENSEN COMPANY Statement of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 0 0 0 0 0 0 0 0 0 Net change in cash Ending cash balance $ 0 $ 0 $ 0 $ 0 $ < Balance Sheet Statement of Cash Flows
Bensen Company started business by acquiring $26,900 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $26,900 that had a $4,500 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,950 cash. Bensen uses straight-line depreciation. Revenue Year 1 $ 7,820 Year 2 $8,320 Year 3 $ 8,520 Year 4 $ 7,320 Year 5 $ 0 Required Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each of the five years. Complete this question by entering your answers in the tabs below. Statement of Income Statement Changes in Balance Sheet Stockholders Statement of Cash Flows Prepare the statements of cash flows for each of the five years. Note: Amounts to be deducted and cash outflows should be indicated by a minus sign. Operating activities: Inflow from customers Outflow for customers Net cash flow from operating activities Investing activities: Net cash flow from investing activities Financing activities: Net cash flow from financing activities BENSEN COMPANY Statement of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 0 0 0 0 0 0 0 0 0 Net change in cash Ending cash balance $ 0 $ 0 $ 0 $ 0 $ < Balance Sheet Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Bensen Company started business by acquiring $26,900 cash from the issue of common stock on January 1, Year 1. The cash acquired
was immediately used to purchase equipment for $26,900 that had a $4,500 salvage value and an expected useful life of four years.
The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the
beginning of the fifth year, the equipment was sold for $4,950 cash. Bensen uses straight-line depreciation.
Revenue
Year 1
$ 7,820
Year 2
$ 8,320
Year 3
$ 8,520
Year 4
$ 7,320
Year 5
$ 0
Required
Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each of
the five years.
Complete this question by entering your answers in the tabs below.
Statement of
Income
Statement
Statement of
Changes in Balance Sheet
Stockholders
Cash Flows
Prepare the statements of cash flows for each of the five years.
Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
Operating activities:
Inflow from customers
Outflow for customers
Net cash flow from operating activities
Investing activities:
BENSEN COMPANY
Statement of Cash Flows
Year 1
Year 2
Year 3
Year 4
Year 5
0
0
0
0
Net cash flow from investing activities
Financing activities:
0
0
0
0
0
Net cash flow from financing activities
Net change in cash
0
0
0
0
0
0
0
0
0
0
Ending cash balance
$
0 $
0 $
0 $
0 $
0
< Balance Sheet
Statement of Cash Flows >
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