Unideno Corporation Was Organized on January 1, 2017, with the Investment

question 178

Essay

Unideno Corporation was organized on January 1, 2017, with the investment of $225,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $201,000 in cash and signing a three-year promissory note for the balance. Unideno signed a five-year, $50,000 promissory note at a local bank during 2017 and received cash in the same amount. During its first year, Unideno collected $93,000 from its customers. It paid $60,600 for inventory, $22,400 in salaries and wages, and another $5,100 in taxes. Unideno paid $5,300 in cash dividends.

Required
1. Prepare a statement of cash flows for the year ended December 31, 2017.
2. What does this statement tell you that an income statement does not?

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Definitions:

Recycling

The process of collecting, processing, and converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower energy usage and pollution.

Cause Marketing

A partnership between a for-profit company and a nonprofit organization to mutually promote and benefit from social or charitable causes.

Cause Marketing

A strategy where businesses align with social issues or causes to increase brand awareness while also contributing to a social cause.

Societal Responsibility

The obligation of businesses to act in ways that benefit society at large, including ethical practices, sustainability, and community engagement.