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The statement of income and unclassified statement of financial position for Crane, Inc. follow: CRANE, INC. Statement of Financial Position December 31 Assets 2021 2020 Cash $98.400 $47.300 Trading investments 130,000 114,000 Accounts receivable 70,500 40,800 Inventory 119.900 90.750 Estimated inventory returns 2.100 2,000 Prepaid expenses 19,000 27.400 Equipment 283,000 255.500 Accumulated depreciation (46.500 (52.200 Total assets $676.400 $525,550 Liabilities and Shareholders' Equity Accounts payable $92,000 $72.200 Property tax payable 10,700 6.400 Refund liability 1,300 900 Bank loan payable-current portion 88,000 92.650 Bank loan payable-noncurrent portion 32,400 42.400 Common shares 210.000 190,000 Retained earnings 242,000 121.000 Total liabilities and shareholders' equity $676.400 $525.550 CRANE, INC. Statement of Income Year Ended December 31, 2021 Sales $562,400 Cost of goods sold 185.400 Gross profit 377,000 Operating expenses 116.460 Income from operations 260.540 Other income and expenses Unrealized gain on trading investments $16,000 Interest expense (4.760 11.240 Income before income tax 271,780 Income tax expense 48,000 Net income $223,780Additional information regarding 2021: Prepaid expenses and property tax payable relate to operating expenses. 2. New equipment costing $84,000 was purchased for $22,600 cash and a $61,400 long-term bank loan payable. 3. Old equipment having an original cost of $56.500 was sold for $1,900. 4. Accounts payable relate to inventory suppliers. 5. Some of the bank loan was repaid during the year. 6. A dividend was paid during the year. 7. Operating expenses include $46,300 of depreciation expense and a $2,600 loss on disposal of equipment. 8. Common shares were issued for $43.000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at.CRANE, INC. Statement of Cash Flows Year Ended December 31, 2021 Cash flows from operating activities Net Income 223,780 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 46,300 Loss on disposal of equipment 2,600 Unrealized gain on trading Investments (16,000) Increase In accounts receivable [29700) Increase In Inventory (29150) Increase In estimated Inventory returns 100 Decrease In prepaid expenses 8400 Increase In accounts payable 19,800 Increase In property taxes payable 4300 Increase In refund liability 400 (32650) Net cash provided by operating activities 191130 Cash flows from Investing activities Purchase of equipment 22600 Proceeds from disposal of equipment 1900) Net cash used by Investing activities (20700)Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by paying $22,600 cash and issuing a $61,400 bank loan payable
