Bensen Company began operations when it acquired $25,800 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $25,800 that had a $3,000 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 $3,530 cash. Bensen uses straight-line depreciation.

	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$7,650	$8,150	$8,350	$7,150	$0

• Income Statement
• Statement of Changes
• Balance Sheet
• Statement of Cash Flows

Prepare income statements for each of the five years.

Note: Losses should be entered with a minus sign.

BENSEN COMPANY
Income Statement
For the Year Ended December 31
	Year 1	Year 2	Year 3	Year 4	Year 5
Gain/(Loss)
Net income/(loss)

BENSEN COMPANY
Statement of Changes in Stockholders Equity
For the Year Ended December 31
	Year 1	Year 2	Year 3	Year 4	Year 5
Net income/(loss)
Total stockholders equity

Prepare the balance sheets for each of the five years.

Note: Amounts to be deducted should be indicated by a minus sign.

BENSEN COMPANY
Balance Sheet
As of December 31
	Year 1	Year 2	Year 3	Year 4	Year 5
Assets
Total assets
Stockholders Equity
Total stockholders' equity

Prepare the statements of cash flows for each of the five years.

Note: Cash outflows should be indicated with a minus sign.

BENSEN COMPANY
Statement of Cash Flows
For the Year Ended December 31
	Year 1	Year 2	Year 3	Year 4	Year 5
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