Accountants for Benson, Inc. have assembled the following data for the year ended December 31, 2018:

2018 2017 Current Assets: Cash \( 105,100 \) 18,000 Accounts Receivable 64,400 68,900 Merchandise Inventory 86,000 82,000 Current Liabilities: Accounts Payable 58,000 56,100 Income Tax Payable 14,700 16,900

Transaction Data for 2018:

Issuance of common stock for cash \( 37,000

Payment of notes payable \) 47,100

Depreciation expense 24,000

Payment of cash dividends 53,000

Purchase of equipment with cash 69,000

Issuance of notes payable to borrow cash 68,000

Acquisition of land by issuing long-term notes payable 123,000

Gain on sale of building 4,500

Book value of building sold 61,000

Net income 66,000

Prepare Benson’s statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities

Benson Inc.

Statement of Cash Flows

For the year ended December 31, 2018

Cash Flows From Operating Activities:

Net Income

$66,000

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Depreciation expense

$24,000

Gain on sale of building

($4,500)

Decrease in account receivables ($68,900-$64,400)

$4,500

Increase in merchandise inventory ($86,000-$82,000)

($4,000)

Increase in account payable ($58,000-$56,100)

$1,900

Decrease in income tax payable ($16,900-$14,700)

($2,200)

Net cash provided/ (used) in operating activities

$85,700

Cash Flows From Investing Activities:

Purchase of equipment

($69,000)

Sale of land

$65,500

Net cash provided/ (used) in investing activities

($3,500)

Cash Flows From Financing Activities:

Issuance of common stock

$37,000

Payment of notes payable

($47,100)

Dividend paid

($53,000)

Issuance of notes payable

$68,000

Net cash provided/ (used) in financing activities

$4,900

Net increase/(Decrease) in cash

$87,100

Cash Balance, December 31, 2017

$18,000

Cash Balance, December 31, 2018

$105,100

Benson Inc.

Statement of Cash Flows (Partial)

For the year ended December 31, 2018

Non-cash Investing and financing activities

Acquisition of land by issuing long-term notes payable

$123,000

Total Non-cash Investing and financing activities

$123,000