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Benson Company began operations on January 1, year 1, by issuing common stock for $35,000 cash. During year 1, Benson received $67,800 cash from revenue and incurred costs that required $48,800 of cash payments. Prepare a GAAP-based income statement and balance sheet for Benson Company for year 1, for the below scenario: c. Benson is a manufacturing company. The $48,800 was paid to purchase the following items: (1) Paid $3,100 cash to purchase materials that were used to make products during the year. (2) Paid $610 cash for wages of factory workers who made products during the year. (3) Paid $27,890 cash for salaries of sales and administrative employees. (4) Paid $17,200 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $2,500 salvage value. The company uses straight-line depreciation. (5) During year 1, Lang started and completed 2,100 units of product. The revenue was earned when Lang sold 1,750 units of product to its customers. Answer is not complete. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. BENSON COMPANY Income Statement for Year 1 Sales revenue $ 67,800 Cost of goods sold Gross margin Administrative expenses $ 67,800 27,890 Net income $ 39,910 Income Statement Balance Sheet Prepare a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) BENSON COMPANY Balance Sheet as of 12/31/Year 1 Assets Cash $ Finished goods inventory Manufacturing equipment Accumulated depreciation 54,000 2,100 17,200 12,300 Total assets $ 85,600 Equity $ Common stock 35,000 50,600 X > Retained earnings Total equity $ 85,600 The following information was taken from Fanning Corporation's SEC filings. Number of employees Revenues (in millions) Properties (in thousands) Total assets (in millions) Company-owned stores Net earnings (in millions) Fiscal Year Ended October 1, 2017 October 2, 2016 307,000 266,000 S 31,987 $ 30,916 6,502 square feet 6,457 square feet $ 14,570 $ 14,517 28,275 12,861 S 4,685 $ 4,618 Required a. Indicate whether each line of information in the table above would best be described as being primarily financial accounting or managerial accounting in nature. c.&d. Based on the data identified as financial or managerial in nature from requirement (a), does it appear that Fanning's 2017 fiscal year was better or worse than its 2016 fiscal year? e. Calculate the revenue and earnings per employee and per thousand feet to determine which year (2017 or 2016) Fanning appeared to be using its facilities more efficiently. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Reg C and D ReqE Calculate the revenue and earnings per employee to determine which year (2017 or 2016) Fanning appeared to be using its facilities more efficiently. (Enter your answers in whole dollars and not in millions.) 2017 2016 Revenue per employee $ 104,192 $ 116,226 Earnings per employee 15,261 17,361 Revenue per thousand feet 4,919,563 X 4,787,982 X Earnings per thousand feet 165,694 X 715,193 X The company used its facilities more efficiently in 2017 Complete this question by entering your answers in the tabs below. Reqa Req B1 Reg B2 Prepare an income statement. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) STUART MODEMS, INC. Income Statement For the Period Ended December 31, year 1 0 $ $ Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Prepare a balance sheet. (Do not Req B2 termediate calculations. Round your answers to the nearest whole dollar amount.) STUART MODEMS, INC. Balance Sheet As of December 31, year 1 Assets: Total assets $ 0 Equity Total stockholders' equity $ 0
