Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Benton Island, Inc. began 2018 with cash of $50,000. During the year, Benton Island earned revenue of $150,000 and collected $110,000 from customers. Expenses for

image text in transcribed

Benton Island, Inc. began 2018 with cash of $50,000. During the year, Benton Island earned revenue of $150,000 and collected $110,000 from customers. Expenses for the year totaled $135,000, of which Benton Island paid $25,000 in cash to suppliers and $90,000 in cash to employees. The company received $2, 300 cash for interest revenue and paid $9,000 for income taxes. Benton Island also paid $32,000 to purchase equipment and a cash dividend of $12,000 to its stockholders during 2018. Prepare the company's operating activities section of the statement of cash flows for the year ended December 31, 2018. Use the direct method. (Use parentheses or a minus sign for net cash used for operating activities. If a box is not used in the statement, leave the box empty: do not select a label or enter a zero.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

SAP Certified Application Associate Financial Accounting With SAP ERP 6 0

Authors: Kiran K ,Augustine D

1st Edition

1544118724, 978-1544118727

More Books

Students also viewed these Accounting questions