Use the following information to prepare Hearts Statement of Cash Flows for 2017. Hearts Inc. Comparative...

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Use the following information to prepare Hearts Statement of Cash Flows for 2017. Hearts Inc. Comparative Balance Sheets 12/31/2016 12/31/2017 Assets: Cash 357,000 1,382,800 AR 100,000 92,000 Prepaid Insurance 15,000 10,000 Inventory 180,000 203,000 Investments 50,000 42,000 Truck 100,000 114,500 Accum. Depreciation -Truck -52,000 -62,800 Equipment 1,537,500 1,241,000 Accum.Depreciation-Equip -580,000 -476,000 Intangibles 40,000 90,000 Accumulated Amortization -12,000 -17,000 Land 600,000 511,000 Totals 2,335,500 3,130,500 Liabilities and Shareholders' Equity: Accounts Payable 200,000 185,000 Accrued Expenses Payable 60,000 77,700 Dividends Payable 45,000 39,000 Short Term Notes Payable 30,000 22,500 Income Tax Payable 72,500 85,600 Unearned Revenue 87,000 43,700 Bonds Payable Long Term 450,000 750,000 Common Stock 57,000 120,000 APIC - Common Stock 293,000 390,000 Preferred Stock 30,000 35,000 APIC - Preferred Stock 100,000 130,000 911,000 1,252,000 2,335,500 3,130,500 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. Use the following information to prepare Hearts Statement of Cash Flows for 2017. Hearts Inc. Comparative Balance Sheets 12/31/2016 12/31/2017 Assets: Cash 357,000 1,382,800 AR 100,000 92,000 Prepaid Insurance 15,000 10,000 Inventory 180,000 203,000 Investments 50,000 42,000 Truck 100,000 114,500 Accum. Depreciation -Truck -52,000 -62,800 Equipment 1,537,500 1,241,000 Accum.Depreciation-Equip -580,000 -476,000 Intangibles 40,000 90,000 Accumulated Amortization -12,000 -17,000 Land 600,000 511,000 Totals 2,335,500 3,130,500 Liabilities and Shareholders' Equity: Accounts Payable 200,000 185,000 Accrued Expenses Payable 60,000 77,700 Dividends Payable 45,000 39,000 Short Term Notes Payable 30,000 22,500 Income Tax Payable 72,500 85,600 Unearned Revenue 87,000 43,700 Bonds Payable Long Term 450,000 750,000 Common Stock 57,000 120,000 APIC - Common Stock 293,000 390,000 Preferred Stock 30,000 35,000 APIC - Preferred Stock 100,000 130,000 911,000 1,252,000 2,335,500 3,130,500 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.