Statement of Cash Flows Problem 2

For Raiding Broncos, Inc. ("RBI"), prepare a statement of cash flows for the year ended December 31, 2013.

RBI Balance Sheet as of December 31, 2013	12/31/12	12/31/13
ASSETS Current Assets Cash	500,000	1,500,000
Accounts Receivable ("A/R")	300,000	400,000
Inventory	100,000	25,000
Prepaid Expenses	50,000	25,000
Short Term Investments	100,000	75,000
Total Current Assets	1,050,000	2,025,000
Non-Current Assets Land	100,000	75,000
Equipment	400,000	500,000
Accumulated Depreciation- Equipment	(100,000)	(150,000)
Goodwill	500,000	400,000
Total Non-Current Assets	900,000	825,000
TOTAL ASSETS	1,950,000	2,850,000
LIABILITIES Current Liabilities: Accounts Payable	250,000	100,000
Accured Liabilities	250,000	400,000
Unearned Revenues	175,000	100,000
Total Current Liabilities	675,000	600,000
Non-Current Liabilities Bonds Payable	-	500,000
Discount on Bonds Payable	-	(25,000)
Total Non-Current Liabilities	-	475,000
TOTAL LIABILITIES	675,000	1,075,000
Stockholder's Equity Common Stock - Par	1	1
APIC- Common Stock	199,999	499,999
Retained Earnings	1,075,000	1,275,000
TOTAL SHAREHOLDER'S EQUITY	1,275,000	1,775,000
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY	1,950,000	2,850,000
ADDITIONAL INFORMATION

1 RBI had a net income of $400,000 for the year ended December 31, 2013. 2 On May 31, 2013, equipment costing $100,000 that had

accumulated depreciation of $50,000 was sold for $70,000 cash.

3 On Decmeber 20, 2013, RBI sold shares of common stock for $300,000 cash. 4 RBI's depreciation expense for the year was $100,000

5. On December 30, 2013, RBI issued bonds with a face value of $500,000

and a stated interest rate of 5% for a $25,000 discount yielding proceeds of $475,000

6. On December 10, 2013, RBI declared a dividend of $200,000 to its common shareholders. The date of record for the dividend was December 20, 2013 and the date that the div idend was paid on December, 30, 2013.