Current Attempt in Progress The income statement and unclassified statement of financial position for Crane, Inc. follow: CRANE, INC. Statement of Financial Position December 31 Assets 2018 2017 Cash $98.400 $47,300 Held for trading investments 130,000 114,000 Accounts receivable 70,500 40.800 Inventory 122.000 93,450 Prepaid expenses 19,000 27,400 Property, plant, and equipment 283,000 255,500 Accumulated depreciation (46,500) (52,200) Total assets $676,400 $526,250 Liabilities and Shareholders' Equity Accounts payable $92.000 $72.200 Accrued liabilities 12,000 7.300 Bank loan payable 130,400 155.750 Common shares 200,000 170,000 Retained earnings 242,000 121.000 Total liabilities and shareholders' equity $676,400 $526,250 CRANE, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross pront Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments 516,000 Interest expense (4,760) Income before income tax Income tax expense Net Income $562,400 185,400 377,000 116,460 260,540 11,240 271.780 48,000 $223,780 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $16,000 was recorded 3. New equipment costing $84,000 was purchased for $22,600 cash and a $61.400 long-term bank loan payable. 4. Old equipment having an original cost of $56,500 was sold for $1,900. 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 $2.600 loss on disposal of equipment. (a) Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with ether a-sign e... -15,000 or in parenthesis eg. (15,0001) CRANE, INC. Statement of Cash Flows Direct Method VE ano hehe a femme Cash Payments E========== = = = = = $ $ Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing 5 by paying $22.600 cash and issuing a $61.400 bank loan payable