Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $27,500 that had a $3,500 salvage value and an expected useful lif four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cas At the beginning of the fifth year, the equipment was sold for $4,090 cash. Bensen uses straight-line depreciation. Year 1 $7,750 Year 2 $8,250 Year 3 $8,450 Year 4 Year 5 $7,250 $0 Revenue Required Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for ea of the five years. Present the statements in the form of a vertical statements model.
Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $27,500 that had a $3,500 salvage value and an expected useful lif four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cas At the beginning of the fifth year, the equipment was sold for $4,090 cash. Bensen uses straight-line depreciation. Year 1 $7,750 Year 2 $8,250 Year 3 $8,450 Year 4 Year 5 $7,250 $0 Revenue Required Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for ea of the five years. Present the statements in the form of a vertical statements model.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Statement of
Transcribed Image Text:Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January 1, Year 1. The cash
acquired was immediately used to purchase equipment for $27,500 that had a $3,500 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 $4,090 cash. Bensen uses straight-line depreciation.
Revenue
Year 1
$7,750
Income
Statement
Required
Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each
of the five years. Present the statements in the form of a vertical statements model.
Complete this question by entering your answers in the tabs below.
Operating activities:
Year 2
$8,250
Stmt of
Changes in Balance Sheet Statement of
Stkholders Eq
Cash Flows
Year 3 Year 4 Year 5
$8,450 $7,250
$0
Prepare the statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model. (Amounts
to be deducted should be indicated by a minus sign.)
Net cash flow from operating activities
Investing activities:
Net cash flow from investing activities
Financing activities:
Net cash flow from financing activities
Net change in cash
Ending cash balance
BENSEN COMPANY
Statement of Cash Flows
For the Year Ended December 31
Year 1
Year 2
Year 3
Year 4
Year 5
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