Question 1 (30 points] Use the Benson Inc. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. Additional Information: a. Purchased machinery for $43,000 cash. b. Sold the long-term investment on January 1, 2014 for $39,000. c. Sold machinery for $14,500 cash that had originally cost $49,500 and had $35,000 of accumulated depreciation. d. Issued $31,000 of bonds payable at face value. e. The short-term investment is a treasury bill that was purchased with maturity in 90 days. (select one) Statement of Cash Flows (select one) Cash flows from operating activities Benson Inc. Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 295,100 135,000 Short-term investments 96,000 89,000 Accounts receivable 400 1,000 Merchandise inventory 51,200 178,000 Long term investment 0 26,000 Machinery 253,500 260,000 Accumulated depreciation (160,000) (170,000) Total assets 536,200 519,000 Adjust to reconcile net income to cash provided by oper. act.: Net increase (decrease) in cash Cash flows from investing activities Cash flows from financing activities Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity Net increase (decrease) in cash Cash at beginning of year Cash at end of year 104,200 5,000 31,000 260,000 136,000 536,200 61,000 41,000 0 260,000 157,000 519,000 630,000 Benson Inc. Income Statement For Year Ended December 31, 2014 Sales Cost Of Goods Sold 590,000 Depreciation expense 25,000 Other expenses 49,000 Gain on sale of long-term investment Net loss (664,000) 13,000 21,000