**Crane Corporation Financial Information**Crane Corporation has provided the following financial information for the preparation of a statement of cash flows. The data is presented as of December 31 for the years 2025 and 2024.### Assets- **Cash** - 2025: $38,900 - 2024: $12,800- **Accounts Receivable** - 2025: $12,200 - 2024: $9,900- **Inventory** - 2025: $11,800 - 2024: $10,000- **Equity Investments** - 2025: $0 - 2024: $3,100- **Buildings** - 2025: $0 - 2024: $29,600- **Equipment** - 2025: $40,400 - 2024: $20,200- **Copyrights** - 2025: $5,000 - 2024: $5,200**Total Assets**- 2025: $108,300- 2024: $90,800### Liabilities- **Allowance for Doubtful Accounts** - 2025: $3,000 - 2024: $4,600- **Accumulated Depreciation – Equipment** - 2025: $2,000 - 2024: $4,500- **Accumulated Depreciation – Buildings** - 2025: $0 - 2024: $5,900- **Accounts Payable** - 2025: $5,000 - 2024: $4,000- **Dividends Payable** - 2025: $0 - 2024: $4,900- **Notes Payable, Short-term (Nontrade)** - 2025: $3,000 - 2024: $4,000This financial summary provides a snapshot of Crane Corporation's assets and liabilities at the end of 2025 and 2024. It reflects changes in cash, receivables, inventory, and different asset categories, as well as liabilities such as allowances for doubtful accounts and payables. **Crane Corporation: Statement of Cash Flows Analysis****Balance Sheet Summary:**- **Common Stock:** - 2025: $38,000 - 2024: $33,000- **Retained Earnings:** - 2025: $21,300 - 2024: $4,900- **Total Equity:** - 2025: $108,300 - 2024: $90,800**Additional Data for 2025:**1. **Equipment Sale:** - Original Cost: $10,900 - Depreciation: 30% - Sold For: $2,5002. **Long-Term Note Payable:** - $5,000 paid by issuing common stock3. **Dividends:** - Cash Dividends Paid: $4,9004. **Building Loss:** - Total Destruction by Flood - Insurance Proceeds: $32,800 (net of $4,000 taxes)5. **Equity Investments:** - Sold at $1,600 above cost - No unrealized gains/losses in 20256. **Acquisition of Equipment:** - Cash: $15,100 - Long-Term Note: $16,000 7. **Interest and Taxes:** - Interest Paid: $1,900 - Income Taxes Paid: $5,000**Instructions for Cash Flow Statement Creation:**- Use the indirect method.- Indicate decreasing cash flow with a minus sign (e.g., -15,000) or in parentheses (e.g., (15,000)).**Template for Use:****CRANE CORPORATION****Statement of Cash Flows**- For the Year Ended December 31, 2025This template will help you organize the details needed to construct an accurate statement of cash flows using the indirect method, focusing on changes in balance sheet accounts and incorporating the additional specified data.

The cash flow statement is prepared at the end of the period to know the cash position. It reflects all cash inflows and outflows and also which activities generated cash and which activities used cash. The important thing is that a business must generate cash form operating activities. The staement of cash flow can be prepared using either direct or indirect method. Determination of deprciation expense for 2025:Determine the loss on sale of equipment:Determine the gain from flood damage:The ending cash balance is $38,900.

Answered: Crane Corporation has contracted with…

Business

Accounting

Crane Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.

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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**Crane Corporation Financial Information**

Crane Corporation has provided the following financial information for the preparation of a statement of cash flows. The data is presented as of December 31 for the years 2025 and 2024.

### Assets

- **Cash**
- 2025: $38,900
- 2024: $12,800

- **Accounts Receivable**
- 2025: $12,200
- 2024: $9,900

- **Inventory**
- 2025: $11,800
- 2024: $10,000

- **Equity Investments**
- 2025: $0
- 2024: $3,100

- **Buildings**
- 2025: $0
- 2024: $29,600

- **Equipment**
- 2025: $40,400
- 2024: $20,200

- **Copyrights**
- 2025: $5,000
- 2024: $5,200

**Total Assets**
- 2025: $108,300
- 2024: $90,800

### Liabilities

- **Allowance for Doubtful Accounts**
- 2025: $3,000
- 2024: $4,600

- **Accumulated Depreciation – Equipment**
- 2025: $2,000
- 2024: $4,500

- **Accumulated Depreciation – Buildings**
- 2025: $0
- 2024: $5,900

- **Accounts Payable**
- 2025: $5,000
- 2024: $4,000

- **Dividends Payable**
- 2025: $0
- 2024: $4,900

- **Notes Payable, Short-term (Nontrade)**
- 2025: $3,000
- 2024: $4,000

This financial summary provides a snapshot of Crane Corporation's assets and liabilities at the end of 2025 and 2024. It reflects changes in cash, receivables, inventory, and different asset categories, as well as liabilities such as allowances for doubtful accounts and payables.

**Crane Corporation: Statement of Cash Flows Analysis**

**Balance Sheet Summary:**
- **Common Stock:**
- 2025: $38,000
- 2024: $33,000
- **Retained Earnings:**
- 2025: $21,300
- 2024: $4,900
- **Total Equity:**
- 2025: $108,300
- 2024: $90,800

**Additional Data for 2025:**

1. **Equipment Sale:**
- Original Cost: $10,900
- Depreciation: 30%
- Sold For: $2,500

2. **Long-Term Note Payable:**
- $5,000 paid by issuing common stock

3. **Dividends:**
- Cash Dividends Paid: $4,900

4. **Building Loss:**
- Total Destruction by Flood
- Insurance Proceeds: $32,800 (net of $4,000 taxes)

5. **Equity Investments:**
- Sold at $1,600 above cost
- No unrealized gains/losses in 2025

6. **Acquisition of Equipment:**
- Cash: $15,100
- Long-Term Note: $16,000

7. **Interest and Taxes:**
- Interest Paid: $1,900
- Income Taxes Paid: $5,000

**Instructions for Cash Flow Statement Creation:**

- Use the indirect method.
- Indicate decreasing cash flow with a minus sign (e.g., -15,000) or in parentheses (e.g., (15,000)).

**Template for Use:**

**CRANE CORPORATION**
**Statement of Cash Flows**
- For the Year Ended December 31, 2025

This template will help you organize the details needed to construct an accurate statement of cash flows using the indirect method, focusing on changes in balance sheet accounts and incorporating the additional specified data.

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