In: Accounting
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