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Prepare a statement of cash flows for 2021 using the indirect method and Calculate free cash flow. Crane Shoes' comparative balance sheet is presented below.
Prepare a statement of cash flows for 2021 using the indirect method and Calculate free cash flow.
Crane Shoes' comparative balance sheet is presented below. Crane reports under ASPE. CRANE SHOES Balance Sheet December 31 Assets 2021 2020 Cash $27,636 $17,346 Accounts receivable 23,716 21,854 Long-term investments 22,540 15,680 Equipment 58,800 68,600 Accumulated depreciation-equipment (13,720) (9,800) Total $ 118,972 $113,680 Liabilities and Shareholders' Equity Accounts payable $19,208 $10,878 Notes payable 9,800 29,400 Common shares 58,800 44,100 Retained earnings 31,164 29,302 Total $118,972 $113,680 Additional Information: 1. Profit was $27,734. Dividends declared and paid were $25,872. 2. Equipment that cost $9,800 and had accumulated depreciation of $1,176 was sold for $4,214. All other changes in non-current account balances had a direct effect on cash flows, except the change in 3. accumulated depreciation. * Question 2 Prepare a statement of cash flows for 2021 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).)Step by Step Solution
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