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).)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter2: Working With The Tax Law
Section: Chapter Questions
Problem 14P
Related questions
Question
Condensed financial data of Crane Inc. follow.
CRANE INC.
Comparative Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
Assets
|
2022
|
2021
|
||||
Cash
|
$117,100
|
$47,400
|
||||
|
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
|
||||
|
(46,100)
|
|
(51,500)
|
|||
Total
|
$721,100
|
$511,200
|
||||
Liabilities and
|
||||||
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
|
||||
|
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
![Pragercacana si cahdanaingandianahad a ndam
CRANE INC
Satamant of Cauh Rlowa
saman nalian a](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53a62b07-7216-42e9-bd02-a72a7e465b9d%2Ff28a8a7f-4b46-41b4-ba0d-83173bfcad11%2Fafsspm_processed.png&w=3840&q=75)
Transcribed Image Text:Pragercacana si cahdanaingandianahad a ndam
CRANE INC
Satamant of Cauh Rlowa
saman nalian a
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