Problem 13-24 Blake Weaver, Crane Enterprises' controller, is preparing the financial statements for 2016. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: On December 31, 2016, Crane sold a piece of equipment with an original cost of $25,060 for $30,190 cash. The equipment had a book value of $13,230. On February 1, 2016, Crane issued $105,960 of common stock to raise cash in anticipation of the purchase of a new building later in the year. On February 2, 2016, Crane took out a ten-year $76,230 long-term loan to provide the remaining funds needed to purchase the building. On May 15, 2016, Crane paid $156,830 for the new building. The company repaid $4,600 of the long-term debt before the end of the year. Crane Enterprises Income Statement For the Year Ended December 31, 2016 Sales revenue $ 1,076,900 Gain on equipment sale 16,960 Total revenue 1,093,860 Cost of goods sold 703,300 Operating expenses Depreciation expense $ 30,750 Interest expense 7,600 Wages expenses 175,640 Other expenses 16,460 230,450 Income before taxes 160,110 Tax expense 64,000 Net income $ 96,110 Crane Enterprises Comparative Balance Sheets As of December 31, 2016 2016 2015 Cash $ 128,900 $ 44,600 Accounts receivable, net 288,350 270,300 Inventory 125,200 95,240 Total current assets 542,450 410,140 Property, plant, & equipment 303,900 160,300 Accumulated depreciation 90,750 60,000 Net property, plant, & equipment 213,150 100,300 Total assets $ 755,600 $ 510,440 Accounts payable $ 151,290 $ 175,670 Taxes payable 17,600 21,760 Mortgage payable 71,630 Total liabilities 240,520 197,430 Common stock 357,860 251,900 Retained earnings 157,220 61,110 Total stockholders' equity 515,080 313,010 Total liabilities & stockholders' equity $ 755,600 $ 510,440 Crane Enterprises Statement of Cash Flows For the Year Ended December 31, 2016 Net cash by Net cash activities activities Net cash Net cash by activities activities Net cash Net cash by activities Click if you would like to Show Work for this question: Open Show Work
