E10. Statement of Cash Flows, Indirect Method, Disclosures. Starland Corporation provided the following comparative balance sheets and income statement. Starland Corporation Balance Sheets At December 31 Assets Current Year Prior Year Current Assets Cash $ 270,001 $ 145,847 Accounts Receivable - net 268,363 255,368 Merchandise Inventory 381,358 268,363 Prepaid Expenses 55,000 75,000 Total Current Assets $ 974,722 $ 741,578 Noncurrent Assets Property, plant, and Equipment - net $3,854,542 $4,323,471 Total Noncurrent Assets $3,854,542 $4,323,471 Total Assets $4,829,264 $5,068,049 Liabilities Current Liabilities Current Portion of Long-Term Debt $ 125,622 $360,877 Accounts Payable 528,252 446,695 Income Taxes Payable 185,877 165,255 Total Current Liabilities $ 839,751 $ 972,827 Noncurrent Liabilities Notes Payable $ 730,854 $ 635,597 Total Noncurrent Liabilities $ 730,854 $ 635,597 Total Liabilities $1,570,605 $1,608,424 Shareholders' Equity Common Stock, $1 par value $ 381,368 $ 381,368 Additional Paid-in Capital in Excess 1,129,950 1,129,950 of Par - Common Retained Earnings 2,287,351 2,083,317 Total Shareholders' Equity $3,798,659 $3,594,625 Less: Treasury Stock at Cost (540,000) (135,000) Total Liabilities and Shareholders' Equity $4,829,264 $5,068,019 Starland Corporation Income Statement For the Current Year Ended December 31 Sales $1,875,050 Cost of Goods Sold 1,125,030 Gross Profit $ 750,020 Selling, General, and Administrative Expenses $ 205,000 Bad Debt Expense 4,394 Depreciation Expense 39,525 Total Operating Exponses $ 248,919 Operating Income $ 501, 101 Loss on Disposal of Equipment $ (50,000) Interest Expense (12,500) Income before Tax $ 438,601 Income Tax Expense (175,440) Net Income $ 263,161 Additional Information >> Starland did not acquire any additional plant assets during the current year. Starland sold equipment with a carrying value of $429,404 at a $50,000 loss. The company borrowed additional funds by issuing a long-term note. Any debt payments made during the year reduced the current portion of long-term debt. Required >> Prepare the cash flow statement for Starland Corporation for the current year using the indirect method. Provide all required disclosures