Question

Bentley Corporation's balance sheet and income statement are as follow Bentley Corporation Comparative Balance Sheet Information Assets Cash ........ Accounts receivable. Merchandise inventory ....... Equipment Accumulated depreciation ............. Total assets... Liabilities and Equity Accounts payable Income taxes payable .... Common shares........ Retained earnings ...... Total liabilities and equity.... December 31 2011 2010 5 116,000 $ 78,000 62,000 54,000 406,000 356,000 222,000 198,000 (104.000) (68,000) 5618,000 5 702,000 $ 46,000 18,000 520,000 118,000 5 702,000 $ 64,000 16,000 480,000 58,000 $618,000 Bentley Corporation Income Statement For Year Ended December 31, 2011 Sales ........... 31,328,000 Cost of goods sold........ 796 000 Gross profit.................... 5 $32.000 Operating expenses: Depreciation expense................. $ 36,000 Other expenses... 334,000 Total operating expenses........... 370,000 Income from operations ................. $ 162,000 Income taxes ................ 28,000 Net income ......... $ 134,000 entley Corporation's activities during 2011: Additional information regarding Bentley Corporation's activities a Equipment is purchased for $24.000 cash 16000 common shares are issued for cash at $2.50 per she Declared and paid cash dividends during the year Pequired flows for 2011 that reports the cash inflows and outflows from operating activities according Prepare a statement of cash flows to the indirect method.

Answer 1

# Answeri- statement of cash flow for the Bentley Corporation Year en dinç2011 $ 1,34,000 i.cash flow from Operating Aetirecties; Net Income Adjustment to reconcile net income provided Add: depreciation Add: Increase in Current Liabilities A) Income taxe paryable (18,670-1600) $ 36,cro $_2000 Less;- Increase in current assets A) Account receivable B) Merchandise Inventory ($ 8,000) (9 so,cro) Less: Decrease in curreizt liabilities A) Accounts Payable ($18,000) Net Carl inflow from operating Aeturities $ 96,07 II. Cash flows from Investing activities Purchase of equipment ($ 20,000) Net cash outflow from Investing Actreily ($ 20,000)

I Cash flow from financing Actrreites : A) Issue of common share 340,000 B) Payment of elireidend(Mate 1) 701VO) Net cash outflow from financinę Actrreities (130) 538.00 Net increase linflew in cash ($96120 -($20020 + $300vo) cash Balance, (Beginning) Add: $ 78,022 case Balance (Ending) $ 1.16,czo Note di calculation of dreidend a Retained earning, (beşinning) Net Income dreidend (Bul. fig.) $ 5e,cva § 13.co + - $ (71 ) Ending (Retained earning) s ligero