Question

The comparative balance sheets and income statement for Benson Corporation follow: Balance Sheets As of December 31 2017 2016 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity $ 71,592 29,605 157,447 2,495 253,490 (154,130) 194,230 $ 554,729 $ 41,290 21, 710 173,190 4,990 286,270 (239,710) 79,430 $ 367,170 66,215 29,272 75,110 25,090 255,000 204,242 $ 554,729 201,000 65,970 $ 367,170 Income Statement For the Year Ended December 31, 2017 Sales $1,498,000 Cost of goods sold. (796,138) Gross profit 701,862 Operating expenses Depreciation expense (25,000) Rent expense (23,870) Salaries expense (256, 460) Other operating expenses (258,260) Net income 138,272

PLS BE SUPER SPECIFIC AND UNDERSTANDABLE

Answer 1

Benson Corporation Statement of Cash flows For the Year Ended December 31,2017 Cash flows from Operating Activities: Net Income Less: Increase/Decrease in current assets and current liabilities |Increase in Accounts Receivables Decrease in Merchandise Inventory Decrease in Prepaid Rent Decrease in accounts Payable Increase in Salaries payable Plus: Noncash Charges Depreciation expenses Net Cash flow from operating activities Cash Flows from Investing Activities Purchase of Land Purchase of equipment Sale of Equipment Net Cash flow from investing activities Cash Flows from Financing Activities 138,272 (7,895) 15,743 2,495 (8,895) 2$ 4,182 25,000 168,902 $ (114,800) (99,100) 2$ 21,300 $ (192,600) Issuance of Common stock 54,000 Net Cash flow from financing activities Net Increase in Cash Beginning Cash balance Ending Cash balance 54,000 30,302 41,290 71,592 %24