The information below was taken from the records of Greenvale Community Day Care Center, a private not-for-profit organization, for the year 2013. The Center provides free day care to low-income families.
1. Trial balance as of January 1, 2013:
Cash........................................................................................ $ 100,000
Contributions receivable, net of $8,000 in un-collectibles.............................152,000
Equipment and furnishings, net..........................................................2,500,000
Building, net................................................................................3,500,000
Accounts payable.......................................................................... (220,000)
Salaries and wages payable............................................................... (42,000)
Net assets-unrestricted............................................................... (5,020,000)
Net assets-temporarily restricted. ....................................................(970,000)
Total.................................................................................. $ 0
2. Unrestricted pledges of $4,250,000 were made during 2013, of which $4,200,000 was collected. In addition, $140,000 of the $160,000 in gross pledges outstanding on January 1, 2013, were collected in cash. The remaining balance was written off. The Center records pledges at gross and provides an allowance for un-collectibles equal to 5 percent of pledges outstanding at year-end.
3. The Center won a state grant of $1,000,000 to support a new preschool program. To date, $600,000 of the grant has been received, and $300,000 has been spent on the program. Of the $300,000 spent, $100,000 was for salaries and wages and $200,000 was for equipment.
4. Donor-restricted resources are accumulated to purchase computers and software for child development programs. During the year, $350,000 was received for child development programs, and $400,000 was spent; $350,000 on computers and $50,000 for software. The Center capitalizes the computers and expenses the software.
5. Cash paid for salaries and wages during the year totaled $3,300,000. The balance of accrued salaries and wages as of year-end is $72,000. Salaries and wages are attributed as 20 percent administrative and 80 percent program services.
6. Expenses for utilities, food, and supplies totaled $750,000 for the year, all for program services. The year-end balance for accounts payable, all related to utilities, food, and supplies, is $170,000.
7. Depreciation for the year on equipment and furnishings, including the computers in 4. above, was $240,000. Depreciation on the building was $550,000. All depreciation is 25 percent administrative and 75 percent program services.
8. $250,000 in state grant money was temporarily invested in short-term debt securities near the end of the year. No interest revenue was earned on these investments in 2013, and their fair value at year-end equaled cost.
Required
Prepare, in good form, a statement of activities, statement of financial position, and statement of cash flows, using the direct method, for Greenvale Community Day Care Center for the year 2013. In the statement of cash flows, include a reconciliation of change in net assets to net cash provided by operating activities.