Question

Crane Company reported the following information for 2017.

Crane Company Comparative Balance Sheets December 31
Assets		2017			2016			Change Increase/Decrease
Cash		$60,360			$36,230			$24,130	Increase
Accounts receivable		61,790			21,800			39,990	Increase
Inventory		44,270			–0–			44,270	Increase
Prepaid expenses		6,050			3,990			2,060	Increase
Land		55,380			70,670			15,290	Decrease
Buildings		199,250			199,250			–0–
Accumulated depreciation—buildings		(20,805	)		(13,870	)		6,935	Increase
Equipment		183,290			67,480			115,810	Increase
Accumulated depreciation—equipment		(28,145	)		(9,970	)		18,175	Increase
Totals		$561,440			$375,580
Liabilities and Stockholders’ Equity
Accounts payable		$42,870			$39,720			$3,150	Increase
Accrued expenses payable		0			9,920			9,920	Decrease
Bonds payable		101,100			151,470			50,370	Decrease
Common stock ($1 par)		229,420			59,810			169,610	Increase
Retained earnings		188,050			114,660			73,390	Increase
Totals		$561,440			$375,580

Crane Company Income Statement For the Year Ended December 31, 2017
Sales revenue				$938,940
Cost of goods sold		$473,170
Operating expenses		229,090
Interest expense		12,000
Loss on disposal of equipment		1,990		716,250
Income before income taxes				222,690
Income tax expense				64,850
Net income				$157,840

Additional information:
1.		Operating expenses include depreciation expense of $40,390.
2.		Land was sold at its book value for cash.
3.		Cash dividends of $84,450 were declared and paid in 2017.
4.		Equipment with a cost of $167,160 was purchased for cash. Equipment with a cost of $51,350 and a book value of $36,070 was sold for $34,080 cash.
5.		Bonds of $50,370 were redeemed at their face value for cash.
6.		Common stock ($1 par) of $169,610 was issued for cash.

Problem: Use this information to 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).)

Answer 1