Crane Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

CRANE INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash$6,000

$6,900

Accounts receivable62,400

50,800

Short-term debt investments (available-for-sale)35,100

18,100

Inventory40,100

60,400

Prepaid rent5,100

4,000

Equipment152,400

131,000

Accumulated depreciation—equipment(34,700

)(24,800

)Copyrights45,500

49,900

Total assets$311,900

$296,300

Accounts payable$45,900

$39,900

Income taxes payable4,000

6,000

Salaries and wages payable8,100

4,000

Short-term loans payable8,100

10,000

Long-term loans payable59,500

68,700

Common stock, $10 par100,000

100,000

Contributed capital, common stock30,000

30,000

Retained earnings56,300

37,700

Total liabilities & stockholders’ equity$311,900

$296,300

CRANE INC.

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue$337,125

Cost of goods sold176,500

Gross profit160,625

Operating expenses120,600

Operating income40,025

Interest expense$11,400

Gain on sale of equipment2,000

9,400

Income before tax30,625

Income tax expense6,125

Net income$24,500

Additional information:

1.Dividends in the amount of $5,900 were declared and paid during 2017.

2.Depreciation expense and amortization expense are included in operating expenses.

3.No unrealized gains or losses have occurred on the investments during the year.

4.Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.

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).)