Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14-1, 14-3, 14-4

The comparative balance sheets and an income statement for Benson Corporation follow:

Balance Sheets As of December 31
	Year 2				Year 1
Assets
Cash	$	70,203			$	39,740
Accounts receivable		27,750				20,350
Merchandise inventory		157,220				172,940
Prepaid rent		2,275				4,550
Equipment		252,640				285,840
Accumulated depreciation		(145,300	)			(234,120	)
Land		192,190				77,790
Total assets	$	556,978			$	367,090
Liabilities
Accounts payable (inventory)	$	61,799				70,100
Salaries payable		29,878				25,610
Stockholders equity
Common stock, $50 par value		252,500				198,500
Retained earnings		212,801				72,880
Total liabilities and equity	$	556,978			$	367,090

Income Statement For the Year Ended December 31, Year 2
Sales	$	1,499,000
Cost of goods sold		(796,669	)
Gross profit		702,331
Operating expenses
Depreciation expense		(23,480	)
Rent expense		(25,460	)
Salaries expense		(255,440	)
Other operating expenses		(258,030	)
Net income	$	139,921

Other Information

Purchased land for $114,400.

Purchased new equipment for $99,500.

Sold old equipment that cost $132,700 with accumulated depreciation of $112,300 for $20,400 cash.

Issued common stock for $54,000.

BENSON CORPORATION
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities:
Add: Decrease in current assets and Increases in current liabilities:
Less: Increases in current assets and Decreases in current liabilities:
Plus: Noncash charges
Cash flows from investing activities:
Cash flows from financing activities:
Ending cash balance