Bensen Company started business by acquiring $26,900 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $26,900 that had a $4,900 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $5,400 cash. Bensen uses straight-line depreciation.

	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	$7,970	$8,470	$8,670	$7,470	$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.

• Income Statement
• Stmt of Changes in Stkholders Eq
• Balance Sheet
• Statement of Cash Flows

Prepare income statements for each of the five years. Present the statements in the form of a vertical statements model.

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)

Prepare the statements of changes in stockholders' equity for each of the five years. Present the statements in the form of a vertical statements model.

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. Present the statements in the form of a vertical statements model. (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. Present the statements in the form of a vertical statements model. (Amounts to be deducted should be indicated by 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 flow from investing activities
Financing activities:
Net cash flow from financing activities
Net change in cash
Ending cash balance