Bensen Company started business by acquiring $60,000 cash from the issue of common stock on January 1, year 1. The cash acquired was immediately used to purchase equipment for $50,000 that had a $10,000 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 $8,800 cash. Bensen uses straight-line depreciation. Year 1 Revenue $ 26,100 Year 2 $ 28,500 Year 5 $ 0 Required Prepare income statements and balance sheets for the first two years. Also prepare the statement of cash flows for Years 1, 2, and 5 (the beginning cash balance in Year 5 is $127,900). Complete this question by entering your answers in the tabs below. Prepare income statements for Year 1 and 2. Present the statements in the form of a vertical statements model. BENSEN COMPANY Income Statement For the Year Ended December 31 Gain/(Loss) Net income/(loss) Year 1 Year 2 Prepare the balance sheets for Years 1 and 2. Present the statements in the form of a vertical statements model. (Am deducted should be indicated by a minus sign.) Assets Total assets Stockholders' Equity BENSEN COMPANY Balance Sheet Year 1 Year 2 Total stockholders' equity Prepare the statements of cash flows for Years 1, 2, and 5. Present the statements in the form of a vertical statement (Amounts to be deducted should be indicated by a minus sign.) BENSEN COMPANY Statement of Cash Flows Year 1 Year 2 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 Bensen Company started business by acquiring $60,000 cash from the issue of common stock on January 1, year 1. The cash acquired was immediately used to purchase equipment for $50,000 that had a $10,000 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 $8,800 cash. Bensen uses straight-line depreciation. Year 1 Revenue $ 26,100 Year 2 $ 28,500 Year 5 $ 0 Required Prepare income statements and balance sheets for the first two years. Also prepare the statement of cash flows for Years 1, 2, and 5 (the beginning cash balance in Year 5 is $127,900). Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows Prepare income statements for Year 1 and 2. Present the statements in the form of a vertical statements model. Prepare income statements for Year 1 and 2. Present the statements in the form of a vertical statements model. BENSEN COMPANY Income Statement For the Year Ended December 31 Gain/(Loss) Net income/(loss) Year 1 Year 2 Prepare the balance sheets for Years 1 and 2. Present the statements in the form of a vertical statements model. (Am deducted should be indicated by a minus sign.) Assets Total assets Stockholders' Equity Total stockholders' equity BENSEN COMPANY Balance Sheet Year 1 Year 2 Prepare the statements of cash flows for Years 1, 2, and 5. Present the statements in the form of a vertical statement (Amounts to be deducted should be indicated by a minus sign.) BENSEN COMPANY Statement of Cash Flows Year 1 Year 2 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 Year 5