Benson Company uses a periodic inventory system and presents the following items derived from its December 31, 2017, adjusted trial balance:

Operating Expenses	$ 39,830
Dividend Revenue	1,200
Retained Earnings, January 1, 2017	77,550
Sales (net)	235,650
Common Stock, $10 par	50,000
Merchandise Inventory, January 1, 2017	26,400
Purchases (net)	81,720

Balance sheet information
Assets	12/31/18	12/31/17
Cash	$20,000	$ 38,000
Accounts receivable	83,000	70,000
Inventory	90,000	85,000
Prepaid Insurance	2,000	1,700
Equipment	40,000	25,000
Less: Accumulated depreciation	(700)	(500)
Total assets	$234,300	$219,200
Liabilities and Stockholders' Equity
Accounts Payable	$30,000	$36,000
Income taxes payable	20,000	15,000
Common stock	100,000	100,000
Retained earnings	84,300	68,200
Total liabilities and stockholders' equity	$234,300	$219,200

The following information is also available for 2017 and is not reflected in the preceding accounts:

1. The common stock has been outstanding for the entire year. A cash dividend of $0.92 per share was declared.
2. The income tax rate on all items of income is 30%.
3. The ending merchandise inventory is $30,030.
4. A pre-tax $4,200 loss was recognized on the sale of Division E (a component of the company). This division had earned a pre-tax operating income of $2,900 during 2016.
5. Damaged inventory was written off at a pre-tax loss of $7,620.
6. An earthquake, which is unusual in the area, caused a $4,700 pre-tax loss.

1. Prepare a 2016 single-step income statement for Benson Company.
2. Calculate the Earnings per share and the Profit margin on sales ratios.
3. Prepare the statement of cash flows, using the indirect method.

YOUR COMPANY Income Statement For the year ended December 31. 2017 Sales revenue Cost of goods sold Gross proft Operating expenses: Total operating expenses Operating Income Other items: Dividendrevenue Loss on write-off of damaged inventory Lost from earthquake Pretax income from continuing operations Income taH expense Income from continuing operations Results from discontinued operations: Income from operations of discontinued Division E (net of x income taxes) Loss on disposal of Division E (net of #xxx income tax credit) Net Income Components of Income Income from continuing operations Income from discontinued operations Net income Earnings per Common Share (# of shares) $0.00 $0.00 YOUR COMPANY Statement of Cash Flows For the year ended December 31st, 2017 Cash Flows from Operating Activities Net Income Adjustments for ytoncash effects: Depreciation expense Changes in current assets and current labilitiesr Increase in accounts receivable Increase in inventory Increase in prepaid insurance Increase in accounts pavable Increase in income tazes pavable Net cash flows for operating activities Cash Flows from Investing Activities Net cash flows for investing activities Cash Flows from Financing Activities Purchase of equipment Payment of dividends Net cash flows from financing activities Net increase in cash Beginning cash balance, Jan. 1 Ending cash balance, December 31st Difference in cash