Assign: Arborista, see facts attached, Required - Prepare a balance sheet, income statement, and statement of cash flows as of December 31. Also attached is an Excel worksheet for your computatations and permutations.

Arborista, Inc. 12/31/2013 Worksheets No. 1 CF Date Event 12/1/2013 1 Issued 10,000 shares of stock 2 Bank Loan Proceeds Due on 12/31/2015 2a Interest 6% per yr accrues ea mo 3 Purchased 2 pick-up trucks last 5 yrs and be worth 2,000 total 12/7/13 12/14/13 12/21/13 12/28/13 50,000 20,000 50,000 20,000 -14,000 -14,000 Frank is hired paid when work completes Francois is hired paid in advance Tree Revenue = $75 per Tree Wage paid = $20 per Tree 12/18/2013 4 Imaprimadonna 20 trees for 12/19 Frank plants cust. pay terms 3 weeks from 12/19 cust. pays on 1/8/2014 Frank paid on 1/5/14 12/18/2013 5 Bonappetit 30 trees planted Francois plants Schedule for planting on 1/18/2014 cust. pays on 12/18/2013 Francois paid on 12/18/14 2,250 -600 56,000 0 1,650 0 Mo/Yr end 12/31/13 1/4/14 1/11/14 50,000 20,000 Arborista, Inc. Cash Flow Statement year ended 12/31/2013 Cash at Beginning Operating Activities: Net Income Add (Deduct) items not affecting cash Depreciation expense Increase in accounts receivable Increase in other current assets Increase in current liabilities Cash used for Operating Activities -14,000 0 wages payable, unearned reve 0 Investing Activities: Payments for Property, Plant Equipment Cash used by Investing Activities 0 Financing Activities: Proceeds from issuance of common stock 1,500 -400 2,250 -600 57,650 0 1,100 Proceeds from Bank Loan Cash provided by Financing Activities 0 Cash at End 0 wages payable, unearned revenue, & accrued interest Arborista, Inc. 12/31/2013 Worksheets No. 1 IS Date Event 12/1/2013 1 Issued 10,000 shares of stock 2 Bank Loan Proceeds Due on 12/31/2015 2a Interest 6% per yr accrues ea mo 3 Purchased 2 pick-up trucks last 5 yrs and be worth 2,000 total 3a Depr. S.l. 12,000/60 mos. 12/7/13 12/14/13 12/21/13 12/28/13 50,000 20,000 50,000 20,000 -14,000 -14,000 Frank is hired paid when work completes Francois is hired paid in advance Tree Revenue = $75 per Tree Wage paid = $20 per Tree 12/18/2013 Imaprimadonna 20 trees for 12/19 Frank plants cust. pay terms 3 weeks from 12/19 cust. pays on 1/8/2014 Frank paid on 1/5/14 12/18/2013 Bonappetit 30 trees planted Francois plants Schedule for planting on 1/18/2014 cust. pays on 12/18/2013 Francois paid on 12/18/14 2,250 56,000 0 -600 1,650 0 Income Statement 12/31/13 1/4/14 1/11/14 Accounts 50,000 20,000 Interest Expense -100 -14,000 Depreciation Expense -200 1,500 Revenue 1,500 -400 Wages -400 2,250 -600 57,650 0 1,100 Net Income 800 Arborista, Inc. Income Statement year ended 12/31/2013 Sales Less Cost of Goods Sold Gross Margin 0 Operating Expenses 0 Interest Expense Net Income 0 wages Arborista, Inc. 12/31/2013 Worksheets No. 1 BS Date Event 12/1/2013 1 Issued 10,000 shares of stock 2 Bank Loan Proceeds Due on 12/31/2015 Interest 6% per yr accrues ea mo 3 Purchased 2 pick-up trucks last 5 yrs and be worth 2,000 total Depr. S.l. 12,000/60 mos. 12/7/13 12/14/13 12/21/13 12/28/13 50,000 50,000 20,000 20,000 -14,000 -14,000 Frank is hired paid when work completes Francois is hired paid in advance Tree Revenue = $75 per Tree Wage paid = $20 per Tree 12/18/2013 Imaprimadonna 20 trees for 12/19 Frank plants cust. pay terms 3 weeks from 12/19 cust. pays on 1/8/2014 Frank paid on 1/5/14 12/18/2013 Bonappetit 30 trees planted Francois plants Schedule for planting on 1/18/2014 cust. pays on 12/18/2013 2,250 Francois paid on 12/18/14 -600 56,000 0 1,650 0 Arborista, Inc. Balance Sheet 12/31/2013 Balance Sheet 12/31/13 1/4/14 1/11/14 Accounts 50,000 Common Stock Cash Note Payable Cash Accrued Interest 20,000 -14,000 Fixed Assets Cash Accumulated Depr. -50,000 50,000 -20,000 20,000 -100 14,000 -14,000 -200 Cash Accounts Receivable Prepaids Total Current Assets 0 Fixed Assets Accumulated Depr. Net Fixed Assets 0 Total Assets 0 Accrued Expenses Unearned Revenue Total Current Liabilities 0 Notes Payable 1,500 Accounts Receivable -400 Wages Payable 2,250 Unearned Revenue Cash Cash Prepaid Wages -600 57,650 0 1,100 Retained Earnings 1,500 -400 -2,250 2,250 -600 600 800 -800 0 Total Long Term Debt 0 Common Stock Retained Earnings Total Stockholders Equity 0 Total Liab. & Stkhldrs Equity 0 Accrued wages & accrued interest Arborista, Inc. plants trees and shrubs for homeowners. The trees are purchased from and delivered by a sister company, Trees-R-Us, Inc.; Arborista specializes in planting. Arborista obtained capital from family members in exchange for common stock, which provides an ownership interest to the family members. On December 1, a total of $50,000 was raised by issuing 10,000 shares of stock. An additional $20,000 was borrowed from their hometown bank, also on December 1. The principal must be repaid at the end of two years, along with 6 percent interest annually, which accrues as time passes. Also on December 1, Arborista took delivery of, and began using in the business, two previously owned Ford F-250 pick-ups for which it paid cash of $7,000 each. These trucks are expected to last for five more years, and the best guess is that each will be worth $1,000 at the end of the five-year period. Arborista hired two employees to do the planting: Frank and Francois. Frank is extremely knowledgeable, but a bit taciturn. Francois is generally ebullient and has a lovely accent, and so his services were in high demand by the customers of his former employer. As a result of his popularity, Francois negotiated a deal with Arborista that he will be paid in advance for every job (i.e., at the time the job is scheduled). Frank is happy to follow the more generally accepted method of being paid after he does the work. The employees furnish their own tools (i.e., shovels and picks). Arborista decides to charge $75 for planting each tree. The worker planting the tree (i.e., Frank or Francois) will receive $20 per tree as his wage. On December 18, two clients came into the office to arrange to have trees planted on their property. The first client, Ms. Imaprimadonna, was insistent that her 20 trees/shrubs be planted the next day, as it was critical that the work be completed before the holidays. Furthermore, she insisted that Frank do the planting, as she had heard Francois was the chatty type and she did not want to pay someone to chat. In addition, she insisted that Frank must arrive at her house before the clock struck 8:00 a.m., or the order was cancelled. Finally, Ms. Imaprimadonna insisted that she be billed for the job and allowed to pay in three weeks. The second client, Ms. Bonappetit, wanted 30 trees/shrubs planted. She was flexible about when the work would be completed, as long as it was scheduled after the first of the year. However, she did ask that Francois do the work, as she had heard wonderful things about his charming manner from her friend. Ms. Bonappetit insisted on paying in advance, and immediately wrote a check for the total amount. Arborista scheduled Francois to do the work in four weeks and, per their agreement, paid him immediately. Frank arrived at Ms. Imaprimadonna's home at 7:59 a.m. on December 19 and completed the planting to her satisfaction. His next payday is January 5. Ms. Imaprimadonna paid promptly on January 8. Francois performed the work for Ms. Bonappetit on January 15. Both customers promised to recommend Arborista, Inc. to their friends. Required Prepare a balance sheet, income statement, and statement of cash flows as of December 31