** USE DIRECT METHOD PLEASE

(IGNORE A)

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