Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 14-1, 14-3, 14-4 The comparative balance sheets and an income statement for Benson Corporation follow Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 76,324 $ 38,140 Accounts receivable 29,959 21,970 Merchandise inventory 157,065 172,770 Prepaid rent 2,470 4,940 Equipment 252,390 285,820 Accumulated depreciation (147,220) (238,210) Land 194,140 82,140 Total assets $ 565, 128 $367,570 Liabilities Accounts payable (inventory) $ 67,644 76,730 Salaries payable 31, 232 26,770 Carhaldare a Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity $ 76,324 29,959 157,065 2,470 252, 390 (147,220) 194, 140 $ 565, 128 $ 38,140 21,970 172,770 4,940 285,820 (238,210) 82,140 $ 367,570 ces $ 67,644 31, 232 76,730 26,770 253,000 213,252 $ 565, 128 200,000 64,070 $ 367,570 Income Statement For the Year Ended December 31, Year 2 Sales $1,498, eee Cost of goods sold (796,138) Gross profit 701,862 Operating expenses Depreciation expense (22, 240) Rent expense (22,370) Salaries expense (251,220) Other operating expenses (256,850) Net income $ 149, 182 Other Information 1. Purchased land for $112.000. 2. Purchased new equipment for $101,300. 3. Sold old equipment that cost $134,730 with accumulated depreciation of $113,230 for $21,500 cash. 4. Issued common stock for $53,000. Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) BENSON CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Add: Decrease in current assets and increases in current liabilities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges $ 0 Cash flows from investing activities: es 0 Cash flows from financing activities: 0 0