Question 4 [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 equipment for $49,000 cash. b. Sold the long-term investment on January 1, 2014 for $2,000. c. Sold equipment for $11,000 cash that had originally cost $48,000 and had $29,500 of accumulated depreciation. d. Issued $52,000 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 oper. act.: Bentley Inc. Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 288,300 105,000 Short-term investments 288.000 275,000 Accounts receivable 95,30057,000 Merchandise inventory. 56,600 122,000 Long term investment 0 20,000 Equipment 211,000 210,000 Accumulated depreciation (168,500) (150,000) Total assets 770,700 639,000 X + Cash flows from investing activities X 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 81,200 25,000 52,000 379,000 233,500 770,700 59,000 49,000 0 379,000 152,000 639,000 820,000 Bentley Inc. Income Statement For Year Ended December 31, 2014 Sales Cost Of Goods Sold 640,000 Depreciation expense 48,000 Other expenses 25,000 Loss on sale of long-term investment Loss on sale of equipment Net income (713,000) (18,000) (7.500) 81,500