Calculate the cash flows from operations using the direct method.

Benji Company

Income Statement

For the Year Ended December 31, 2015

Revenues $8,200

Depreciation expense $ 400

Other operating expenses 6,800 7,200

Income before income taxes $1,000

Income tax expense 340

Net income $ 660

Benji Company

Balance Sheet

December 31, 2015 and 2014

2015 2014 2015 2014

Assets: Liab. & SE:

Cash $ 380 $ 120 A/P $ 770 $ 600

A/R 640 580 Inc.Taxes/Pay. 90 160

Inventories 950 840 LT debt 1,080 1,630

Plant & Equip. 2,870 2,990 Common Stock 1,000 1,000

Less: Acc. Depr. (1,120) (720) Retained Earnings 780 420

Total Assets $3,720 $3,810 Total Liab. & SE $3,720 $3,810