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).)
