Author Question: Prepare the statement of cash flows for Benji Company using the indirect method. Benji Company ... (Read 137 times)

Mimi · **on:** Jul 6, 2018

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 · **Reply #1 on:** Jul 6, 2018

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

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