Condensed financial data of Crane Inc. follow. CRANE INC. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $117,100 $47,400 Accounts receivable 93,000 32,700 Inventory 111,400 102,700 Prepaid expenses 30,000 25,300 Long-term investments 141,000 113,100 Plant assets 274,700 241,500 Accumulated depreciation (46,100) (51,500) Total $721,100 $511,200 Liabilities and Stockholders’ Equity Accounts payable $111,300 $67,100 Accrued expenses payable 16,100 17,400 Bonds payable 118,400 149,600 Common stock 220,900 174,000 Retained earnings 254,400 103,100 Total $721,100 $511,200 CRANE INC. Income Statement For the Year Ended December 31, 2022 Sales revenue $391,600 Less: Cost of goods sold $134,600 Operating expenses, excluding depreciation 12,200 Depreciation expense 30,600 Income tax expense 27,500 Interest expense 5,000 Loss on disposal of plant assets 7,500 217,400 Net income $174,200 Additional information: 1. New plant assets costing $79,700 were purchased for cash during the year. 2. Old plant assets having an original cost of $46,500 and accumulated depreciation of $36,000 were sold for $3,000 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $22,900 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Condensed financial data of Crane Inc. follow. CRANE INC. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $117,100 $47,400 Accounts receivable 93,000 32,700 Inventory 111,400 102,700 Prepaid expenses 30,000 25,300 Long-term investments 141,000 113,100 Plant assets 274,700 241,500 Accumulated depreciation (46,100) (51,500) Total $721,100 $511,200 Liabilities and Stockholders’ Equity Accounts payable $111,300 $67,100 Accrued expenses payable 16,100 17,400 Bonds payable 118,400 149,600 Common stock 220,900 174,000 Retained earnings 254,400 103,100 Total $721,100 $511,200 CRANE INC. Income Statement For the Year Ended December 31, 2022 Sales revenue $391,600 Less: Cost of goods sold $134,600 Operating expenses, excluding depreciation 12,200 Depreciation expense 30,600 Income tax expense 27,500 Interest expense 5,000 Loss on disposal of plant assets 7,500 217,400 Net income $174,200 Additional information: 1. New plant assets costing $79,700 were purchased for cash during the year. 2. Old plant assets having an original cost of $46,500 and accumulated depreciation of $36,000 were sold for $3,000 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $22,900 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Condensed financial data of Crane Inc. follow.

CRANE INC. Comparative Balance Sheets December 31
Assets	2022	2021
Cash	$117,100		$47,400
Accounts receivable	93,000		32,700
Inventory	111,400		102,700
Prepaid expenses	30,000		25,300
Long-term investments	141,000		113,100
Plant assets	274,700		241,500
Accumulated depreciation	(46,100)		(51,500)
Total	$721,100		$511,200

Liabilities and Stockholders’ Equity
Accounts payable	$111,300		$67,100
Accrued expenses payable	16,100		17,400
Bonds payable	118,400		149,600
Common stock	220,900		174,000
Retained earnings	254,400		103,100
Total	$721,100		$511,200

CRANE INC. Income Statement For the Year Ended December 31, 2022
Sales revenue		$391,600
Less:
Cost of goods sold	$134,600
Operating expenses, excluding depreciation	12,200
Depreciation expense	30,600
Income tax expense	27,500
Interest expense	5,000
Loss on disposal of plant assets	7,500	217,400
Net income		$174,200

Additional information:

1.		New plant assets costing $79,700 were purchased for cash during the year.
2.		Old plant assets having an original cost of $46,500 and accumulated depreciation of $36,000 were sold for $3,000 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $22,900 was declared and paid during the year.
5.		Common stock was issued at par for cash.
6.		There were no significant noncash transactions.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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