Requirement 1

Based on the financial statements provided, prepare the Statement of Cash Flows for

the year ended December 31, 2013.

Additional Information Needed:

Draper declared and paid $1,400 in dividends to stockholders. The issue price of the bonds was $360,384 and the amortization of the bond discount for the year was $3,432. Net Income for the year was $141,235.

Draper Consulting Inc.
Balance Sheet
December 31, 2013 and 2012
	2013	2012
Assets:
Current Assets:
Cash	514,936	16,350
Accounts Receivable	37,500	1,750
Supplies	2,200	200
Total Current Assets	554,636	18,300
Plant Assets:
Equipment	16,000	1,800
Less: Accumulated Depreciation - Equipment	(440)	(30)
Furniture	5,700	4,200
Less: Accumulated Depreciation - Furniture	(661)	(70)
Building	125,000	0
Less: Accumulated Depreciation - Building	(1,652)	0
Total Assets	698,583	24,200
Liabilities:
Current Liabilities:
Accounts Payable	10,000	4,650
Salary Payable	4,100	685
Unearned Service Revenue	0	700
Total Current Liabilities	14,100	6,035
Long-Term Liabilities:
Interest Payable	10,667	0
Notes Payable	40,000	0
Bonds Payable	400,000	0
Less: Discount on Bonds Payable	(36,184)	0
Total Liabilities	428,583	6,035
Stockholders' Equity:
Common Stock	130,000	18,000
Retained Earnings	140,000	165
Total Stockholders' Equity	270,000	18,165
Total Liabilities and Stockholders' Equity	698,583	24,200

Draper Consulting Inc.
Income Statement
Year Ended December 31, 2012
Revenue:
Service Revenue		3,850
Expenses:
Rent Expense	550
Utilities Expense	250
Salary Expense	685
Depreciation Expense - Equipment	30
Depreciation Expense - Furniture	70
Supplies Expense	700
Total Expenses		2,285
Net Income		1,565

Draper Consulting, Inc Statement of Cash Flows Year Ended December 31, 2013 Cash Flows from Operating Activities: Adjustments to reconcile Net Income to net cash: Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Net Cash Provided by Investing Activities Cash Flows from Financing Activities: Net Cash Provided by Financing Activities Net Increase in Cash Cash Balance, December 31, 2012 Cash Balance, December 31, 201;3