Exercise 23-11

Condensed financial data of Crane Company for 2017 and 2016 are presented below.

CRANE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016
		2017			2016
Cash		$1,760			$1,180
Receivables		1,780			1,280
Inventory		1,610			1,920
Plant assets		1,880			1,660
Accumulated depreciation		(1,220	)		(1,190	)
Long-term investments (held-to-maturity)		1,310			1,400
		$7,120			$6,250
Accounts payable		$1,170			$880
Accrued liabilities		190			240
Bonds payable		1,390			1,540
Common stock		1,910			1,730
Retained earnings		2,460			1,860
		$7,120			$6,250

CRANE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$7,020
Cost of goods sold		4,780
Gross margin		2,240
Selling and administrative expenses		910
Income from operations		1,330
Other revenues and gains
Gain on sale of investments		70
Income before tax		1,400
Income tax expense		540
Net income		860
Cash dividends		260
Income retained in business		$600

Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 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).)