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Bensen Company began operations when it acquired $25,600 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used
Bensen Company began operations when it acquired $25,600 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $25,600 that had a $4,000 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $3,100 cash. Bensen uses straight-line depreciation. Revenue 2018 $7,930 2019 $8,430 2020 $8,630 2021 $7,430 2022 $0 Required Prepare income statements, statements of changes in stockholders' equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) BENSEN COMPANY For the Year Ended December 31 Income Statement 2018 2019 2020 2021 2022 Gain/(Loss) Net income/(loss) Satement of Changes in Stockholders' Equity Net income/(loss) Total stockholder's equity Balance Sheet Assets Total assets Stockholder's Equity Total stockholder's equity L L L L Statement of Cash Flows Operating activities: Net cash flow from operating activities Investing activities: Net cash investing activities Financing activities: Net cash flow from financing activities Net change in cash Ending cash balance
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