Prepare Hearts Statement of CFO: Compraram 1 NI Q1 12/31/2016 12/31/2017 2 Depr. Exp Truck Q2 Assets: Cash 357,000 1,382,800 Depr. Exp - Equip AR 100,000 92,000 Amort. Exp Intang Q4 Prepaid Insurance 15,000 10,000 3 L/G on Sale Investments Q5 Inventory 180,000 203,000 L/G on Sale - Truck Q6 Investments 50,000 42,000 L/G on Sale Equip Q7 Truck 100,000 114,500 L/G on Sale Intang Q8 Accum. Depreciation-Truck -52,000 -62,800 L/G on Sale Land Q9 Equipment 1,537,500 1,241,000 4 A Cash Q10 Accum.Depreciation - Equip -580,000 -476,000 Intangibles 40,000 90,000 A AR Q11 Accumulated Amortization -12,000 -17,000 A Prepaid Insurance Q12 Land 600,000 511,000 A Inventory Q13 Totals 2,335,500 3,130,500 A Accounts Pay Q14 A Accrued Exp Pay Q15 Liabilities and Shareholders' Equity: A Dividends Pay Q16 Accounts Payable 200,000 185,000 A Short Term Notes Pay Q17 Accrued Expenses Payable 60,000 77,700 A Income Tax Pay Q18 Dividends Payable 45,000 39,000 A Unearned Rev Q19 Q20 Short Term Notes Payable 30,000 22,500 Income Tax Payable 72,500 85,600 Net Cash Provided by Operating Activities Q21 Unearned Revenue 87,000 43,700 CFI: Sold Investments Q22 Bonds Payable Long Term 450,000 750,000 Sold Truck Q23 Common Stock 57,000 120,000 Sold Equipment Q24 APIC Common Stock 293,000 390,000 Sold Intangibles Q25 Sold Land Q26 Bought Investments Q27 Bought Truck Q28 Bought Equipment Q29 Bought Intangible Q30 Bought Land Q31 Net Cash Provided by Investing Activities Q32 CFFA: Paid Short Term Notes Pay Q33 Paid LT Bonds Pay Q34 Issued LT Bonds Pay Q35 Paid Dividends Q36 Issued Common Stock Q37 Issued Preferred Stock Q38 Net Cash Used By Financing Activities Q39 Change in Cash 2017 Q40 Beginning Cash 357,000 Ending Cash 1,382,800 Preferred Stock APIC Preferred Stock Retained Earnings Totals Hearts additional Information that happened in 2017: A. Hearts had a net income of $475,000. The company only uses cash dividends. B. Hearts bought $74,000 worth of investments and sold other investments for a gain of $8,300. C. Hearts purchased a truck for $53,400 by paying $28,250 and financing the rest with a short term notes payable. Hearts recorded depreciation expense on trucks for $19,650 and sold a truck for a loss of $2,925. D. Hearts sold Equipment with an original historical cost of $747,500 and accumulated depreciation of $293,700 for a gain of $87,300. E. When new equipment is purchased, Hearts pays for 17% with cash and finances the remaining 83% by issuing a long term bond payable. F. Hearts amortization expense was $11,435. Hearts sold a patent this year for $21,360 cash Hearts had originally bought the patent for $17,940. Hearts purchased a different patent and paid for it using 55% cash and issuing 10% worth of Common Stock and 35% in Additional Paid in Capital -Common Stock. G. Sold land for a $209,400 cash, which generated a loss of $39,325. Hearts pays for land purchases with cash. H. Hearts settled $175,000 of its bond payable with cash. 30,000 35,000 100,000 130,000 911,000 1,252,000 2,335,500 3,130,500