-725 Question 8 of 8 View Policies Current Attempt in Progress Presented below is the comparative balance sheet for Crane Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: CRANE INC. Balance Sheet December 31 2021 2020 Assets Cash $67,000 $98,000 101,000 75,000 Accounts receivable Inventory 205,000 155,500 101,500 0 Long-term investment 535.000 460,000 Property, plant, and equipment Less: Accumulated depreciation (162,500) (140,000) $847,000 $648,500 Activate Set Liabilities and Shareholders' Equity $57,500 $47.000 Accounts payable 28C Weather alert BI orch Question 8 of 8 - 125 $847,000 $648,500 Liabilities and Shareholders' Equity $57,500 $47,000 Accounts payable Dividends payable 6,000 0 Income tax payable 14,000 15,000 Long-term notes payable 25,000 0 630,000 525,000 Common shares Retained earnings 114,500 61,500 $847,000 $648,500 CRANE INC. Income Statement Year Ended December 31, 2021 Sales $663,000 432,000 Cost of goods sold Gross profit Acti GO 231,000 Operating expenses $147.500 28C Weather alert Question 8 of 8 CRANE INC. Income Statement Year Ended December 31, 2021 Sales $663,000 Cost of goods sold 432,000 Gross profit 231,000 Operating expenses $147,500 Loss on sale of equipment 3,000 150,500 Profit from operations 80,500 Interest expense 3,000 Interest revenue (4,500) (1,500) Profit before income tax 82,000 Income tax expense 14,000 Profit $68,000 Additional information: 28C FI -/25 Question 8 of 8 Additional information: 1. Cash dividends of $15,000 were declared. 2. A long-term investment was acquired for cash at a cost of $101,500. 3. Depreciation expense is included in the operating expenses. 4. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment. 5. Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9,000 at the time of sale. 6. The company issued a note payable for $28,000 and repaid $3,000 by year end. 7. All purchases of inventory are on credit. 8. Accounts Payable is used only to record purchases of inventory. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a -sign eg. -15,000 or in parenthesis eg. (15,000).) CRANE INC. Cash Flow Statement - Indirect Method GO por Wonthar al