Chapter 22, Problem 22.7E

Statement of Cash Flows, Indirect Method, Disclosures. Michael Hart Associates closed its books for the current year. The firm provided the following comparative balance sheets and income statement.

Michael Hart Associates Balance Sheets At December 31
Assets	Ending			Beginning
Current Assets
Cash	$ 18,869		$ 44,400
Held to-Maturity Debt Investments	30,988		0
Accounts Receivable - net	24,975		27,750
Merchandise Inventory	46,250		37,000
Prepaid Expenses	25,000		15,000
Total Current Assets	$ 146,082		$ 124,150
Noncurrent Assets
Land	$ 900,000	$ 725,000
Property. Plant, and Equipment	1,684,638	1,684,638
Accumulated Depreciation	(342,000)	(320,000)
Indefinite Life Intangible Assets	0	22,575
Total Noncurrent Assets	$2,242,638	$2,112,213
Total Assets	$2,388,720	$2,236,363
Liabilities
Current Liabilities
Accounts Payable	$ 74,062		$ 39,688
Dividends Payable	22,200		0
Income Taxes Payable	18,000		10,000
Total Current Liabilities	$ 114,262		$ 49,688
Noncurrent Liabilities

Notes Payable	$ 107,208	$ 453,610
Total Noncurrent Liabilities	$ 107,208	$ 453,610
Total Liabilities	$ 221,470	$ 503,298
Shareholders' Equity
Common Stock. $1 par value	$ 685,000	$ 500,750
Additional Paid in Capital in Excess of Par - Common	890,250	733,000
Additional Paid m Capital - Stock Options	37,000	0
Retained Earnings	555,000	499,315
Total Shareholders' Equity	$ 2,167,250	$1,733,065
Total Liabilities and Shareholders' Equity	$2,388,720	$2,236,363