Question

Statement of Cash Flows Problem 1

For the Union of Suspended Children, Inc. ("USCI"), prepare a statement of cash flows for the year ended December 31, 2013.

USCI Balance Sheet as of December 31, 2013	12/31/12	12/31/13
ASSETS Current Assets Cash	500,000	2,500,000
Accounts Receivable ("A/R")	400,000	300,000
Inventory	200,000	350,000
Prepaid Expenses	175,000	150,000
Short Term Investments	100,000	150,000
Total Current Assets	1,375,000	3,450,000
Non-­‐CurrentAssets Land	100,000	200,000
Equipment	600,000	750,000
Accumulated Depreciation-­‐ Equipment	(200,000)	(250,000)
Intellectual Property	100,000	500,000
Accumulated Amortization-­‐ Intellectual Property	(10,000)	(30,000)
Total Non-­‐Current Assets	590,000	1,170,000
TOTAL ASSETS	1,965,000	4,620,000
LIABILITIES Current Liabilities: Accounts Payable	250,000	500,000
Accured Liabilities	300,000	100,000
Unearned Revenues	200,000	250,000
Total Current Liabilities	750,000	850,000
Non-­‐CurrentLiabilities Bonds Payable	-­‐	1,500,000
Premium on Bonds Payable	-­‐	50,000
Total Non-­‐Current Liabilities	-­‐	1,550,000
TOTAL LIABILITIES	750,000	2,400,000
Stockholder's Equity Common Stock -­‐ Par	1	1
APIC-­‐ Common Stock	199,999	1,999,999
Treasury Stock	-­‐	(100,000)
Retained Earnings	1,015,000	320,000
TOTAL SHAREHOLDER'S EQUITY	1,215,000	2,220,000
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY	1,965,000	4,620,000
ADDITIONAL INFORMATION

1 USCI had a net loss of $695,000 for the year ended December 31, 2013. 2  On March 31, 2013, equipment costing $100,000 that had

accumulated depreciation of $20,000 was sold for $10,000 cash.

3 On Decmeber 20, 2013, USCI sold shares of common stock for $1,800,000 cash. 4  USCI's depreciation expense for the year was $70,000

5. On January 30, 2013, USCI acquired a patent worth $400,000 by issuing a bond payable for $400,000.
6. On December 30, 2013, USCI issued bonds with a stated rate of 5% and a face value of

$1,100,000 that raised $1,150,000 in total proceeds.

Answer 1