Prepare the statement of cash flows for Benji Company using the ...

[Mimi]

Prepare the statement of cash flows for Benji Company using the indirect method.
 
  Benji Company
  Income Statement
  For the Year Ended December 31, 2015
 
   Revenues 8,200
   Depreciation expense  400
   Other operating expenses 6,800 7,200
   Income before income taxes 1,000
   Income tax expense 340
   Net income  660
 
  Benji Company
  Balance Sheet
  December 31, 2015 and 2014
 
   2015 2014 2015 2014
  Assets: Liab. & SE:
  Cash  380  120 A/P  770  600
  A/R 640 580 IncTaxes/Pay. 90 160
  Inventories 950 840 LT debt 1,080 1,630
  Plant & Equip. 2,870 2,990 Common Stock 1,000 1,000
  Less: Acc. Depr.(1,120) (720) Retained Earnings 780 420
  Total Assets 3,720 3,810 Total Liab. & SE 3,7203,810
 
 
 What will be an ideal response?

Question 2

The source of information to complete the W-2 form is the employee's individual earnings record.
  Indicate whether the statement is true or false

[mirabriestensky]

Answer to Question 1

Benji Company
Statement of Cash Flows
For the Year Ended December 31, 2015

Net income 660
Adjustments to reconcile net income
to net cash provided by (used for)
operating activities:
Depreciation 400
Changes in assets and liabilities:
Accounts receivable (60)
Inventory (110)
Accounts payable 170
Income taxes payable (70)
Net cash provided by operating activities 990
Cash flows from investing activities:
Sales of plant and equipment 120
Net cash provided by investing activities 120
Cash flows from financing activities:
Repayment of long-term debt (550)
Dividends paid (300)
Net cash used by financing activities (850)
Net increase (decrease) in cash 260
Cash at beginning of period 120
Cash at end of period 380

Answer to Question 2

T

[Mimi]

Excellent

[upturnedfurball]

TYSM