Financial statements for Crane Company are given below: Crane Company Balance Sheet January 1, 2021 Assets Equities Cash $ 970000 Accounts payable $ 458000 Accounts receivable 867000 Buildings and equipment 3680000 Accumulated depreciation— buildings and equipment (1160000 ) Common stock 2790000 Patents 431000 Retained earnings 1540000 $4788000 $4788000 Crane Company Statement of Cash Flows For the Year Ended December 31, 2021 Increase (Decrease) in Cash . Cash flows from operating activities Net income $1180000 Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable $(386000 ) Increase in accounts payable 196000 Depreciation—buildings and equipment 358000 Gain on sale of equipment (147000 ) Amortization of patents 48000 69000 Net cash provided by operating activities 1249000 . Cash flows from investing activities Sale of equipment 286000 Purchase of land (603000 ) Purchase of buildings and equipment (1149000 ) Net cash used by investing activities (1466000) . Cash flows from financing activities Payment of cash dividend (364000 ) Sale of common stock 966000 Net cash provided by financing activities 602000 Net increase in cash 385000 Cash, January 1, 2021 970000 Cash, December 31, 2021 $1355000 Total assets on the balance sheet at December 31, 2021 are $6651000. Accumulated depreciation on the equipment sold was $339000. The book value of the buildings and equipment at December 31, 2021 was $3652000. $4390000. $3241000. $3172000.

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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Financial statements for Crane Company are given below:

Crane Company
Balance Sheet
January 1, 2021
Assets	Equities
Cash	$ 970000		Accounts payable	$ 458000
Accounts receivable	867000
Buildings and equipment	3680000
Accumulated depreciation— buildings and equipment	(1160000	)	Common stock	2790000
Patents	431000		Retained earnings	1540000
	$4788000			$4788000

Crane Company
Statement of Cash Flows
For the Year Ended December 31, 2021
Increase (Decrease) in Cash
.
Cash flows from operating activities
	Net income					$1180000
	Adjustments to reconcile net income to net cash provided by operating activities:
		Increase in accounts receivable		$(386000	)
		Increase in accounts payable		196000
		Depreciation—buildings and equipment		358000
		Gain on sale of equipment		(147000	)
		Amortization of patents		48000			69000
Net cash provided by operating activities					1249000
.
Cash flows from investing activities
	Sale of equipment		286000
	Purchase of land		(603000	)
	Purchase of buildings and equipment		(1149000	)
Net cash used by investing activities					(1466000)
.
Cash flows from financing activities
	Payment of cash dividend		(364000	)
	Sale of common stock		966000
Net cash provided by financing activities					602000
Net increase in cash					385000
Cash, January 1, 2021					970000
Cash, December 31, 2021					$1355000

Total assets on the balance sheet at December 31, 2021 are $6651000. Accumulated depreciation on the equipment sold was $339000.

The book value of the buildings and equipment at December 31, 2021 was

$3652000.

$4390000.

$3241000.

$3172000.

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