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Question 3 [30 points] Use the Bentley Inc, financial statements and supplementary information given below to prepare a statement of cash flows for the year
Question 3 [30 points] Use the Bentley 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 $33,000 cash b. Sold the long-term investment on January 1, 2014 for $13,000 c. Sold machinery for $10,500 cash that had originally cost $44,000 and had $33,500 of accumulated depreciation d. Issued $35,000 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 Adjust. to reconcile net income to cash provided by operact Bentley Inc Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 217,400 135,000 Short-term investments 45,000 39,000 Accounts receivable 22,300 36,000 Merchandise inventory 61,900 115.000 Long term investment 0 31,000 Machinery 269,000 280,000 Accumulated depreciation (135,500) (130,000) Total assets 480,100 506,000 X + 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 20,100 16,000 35,000 265,000 144 000 480 100 59,000 43,000 0 265,000 139.000 506,000 Net increase (decrease) in cash Cash at beginning of year Cash at end of year 670,000 Bentley Inc. Income Statement For Year Ended December 31, 2014 Sales Cost Of Goods Sold 570,000 Depreciation expense. 39,000 Other expenses. 38,000 Loss on sale of long-term investment Net income (647,000) (18,000) 5,000
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