Current Attempt in Progress The income statement and unclassified statement of financial position for Crane, Inc. follow: 2018 CRANE, INC. Statement of Financial Position December 31 Assets 2017 Cash $98,800 $47,400 Held for trading investments 125,000 114,500 Accounts receivable 78,500 41,900 Inventory 122,200 94,300 Prepaid expenses 18,900 27,800 Property, plant, and equipment 302,000 279,000 Accumulated depreciation (50,000) (53,600 ) Total assets $695,400 $551,300 Liabilities and Shareholders' Equity Accounts payable $93,000 $70,500 Accrued liabilities 11,800 7,200 Bank loan payable 85,600 187,100 Common shares 260,000 180,000 Retained earnings 245,000 106,500 Total liabilities and shareholders' equity $695,400 $551,300 CRANE, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $10,500 Interest expense (4.760) Income before income tax Income tax expense Net income $512,900 186,900 326,000 116,430 209,570 5,740 215,310 43,000 $172,310 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $10,500 was recorded. 3. New equipment costing $86,000 was purchased for $21,500 cash and a $64,500 long-term bank loan payable. 4. Old equipment having an original cost of $63,000 was sold for $1,700. 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $46,300 of depreciation expense and a $11,400 loss on disposal of equipment. (a) Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesis es (15,000 CRANE, INC. Statement of Cash Hows-Direct Method Cash flows from operating activities Cash Payments $ > >> >