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Craig A. Smith & Associate, Inc. and MPS31), LLC <br />Notes to Financial Statements <br />NOTE 2 — ACCOUNTS RECEIVABLE <br />The Companies recognized accounts receivable per the revenue recognition policy. The below <br />table summarizes the accounts receivable as of December 31 for each year end. <br />Current <br />31 — 60 Days <br />61 — 90 Days <br />91 Days and over <br />Total Accounts Receivable <br />Allowance for Doubtful Accounts <br />Net Accounts Receivable <br />NOTE 3 — PROPERTY, PLANT AND EQUIPMENT <br />t►�i7�[:��i7F� <br />$ 480,957 $ 443,301 <br />507,513 399,228 <br />179,064 321,402 <br />107,792 146,410 <br />$1,275,326 $1,310,341 <br />$1,275,326 $1,310,341 <br />The following table summarizes Property, Plant and Equipment. <br />2016 <br />Land <br />$ 15,000 <br />Building <br />66,555 <br />Professional Equipment <br />532,280 <br />Vehicles <br />8,480 <br />Furniture, Fixtures & Office Equipment <br />37,1.77 <br />Leasehold Improvements <br />0 <br />Computers <br />233,330 <br />Total <br />892,822 <br />Less: Accumulated Depreciation <br />(575,155) <br />Net Property and Equipment <br />$317,667 <br />2015 <br />$ 15,000 <br />66,555 <br />572,451 <br />12,479 <br />52,225 <br />15,263 <br />259,166 <br />993,139 <br />(772,145) <br />$220,994 <br />Depreciation expense was $51,280 and $49,099 for the years ended December 31, 2016 and <br />2015, respectively, which is included in Amortization / Depreciation on the Statement of Income. <br />Assets acquired under capital leases totaled $253,202 and $162,785 as of December 31, 2016 <br />and 2015, respectively and are included in the above schedule. <br />During the years ended December 31, 2016 and 2015, the Companies sold property, plant and <br />equipment with a net book value of $3,200 and $0 at a sales price of $3,250 and $11,750, <br />thereby recognizing a gain of $50 and $11,750, respectively. The gain on disposal of assets has <br />been included in the Other Income section of the Combined Statements of Income. <br />-9- <br />45 <br />