Problem 5-6 Crane Inc. had the following balance sheet at December 31, 2016. CRANE INC. BALANCE SHEET Cash Accounts receivable Investments Plant assets (net) Land DECEMBER 31, 2016 $23,760 Accounts payable 24,960 Notes payable (long-term) 35,760 Common stock 81,000 Retained earnings 43,760 33,760 44,760 103,760 26,960 $209,240 $209,240 During 2017, the following occurred 1. Crane Inc. sold part of its investment portfolio for $17,060. This transaction resulted in a gain of $5,460 for the firm. The company classifies its investments as available-for-sale. 2. A tract of land was purchased for $16,760 cash. 3. Long-term notes payable in the amount of $18,060 were retired before maturity by paying $18,060 cash. 4. An additional $22,060 in common stock was issued at par 5. Dividends of $10,260 were declared and paid to stockholders. 6. Net income for 2017 was $35,760 after allowing for depreciation of $13,060. 7. Land was purchased through the issuance of $38,760 in bonds. 8. At December 31, 2017, Cash was $40,760, Accounts Receivable was $45,360, and Accounts Payable remained at $33,760. Your answer is partially correct. Try again. Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) CRANE INC. Statement of Cash Flows Cash 85,760 Adjustments to reconcile net income to Net Cash Provided by Operating Activities in on Sale of Investments 5,460 Your answer is partially correct. Try again. Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parent hesis e.g. (15,000).) CRANE INC Statement of Cash Flows Cash Flows from Activiti et Inco Adjustments to reconole net income to t Cash Provided by Operating Activities in on Sale of Investmern 5,460 20,400 12,800 Flows from Investing Activit 7,0 rchase of 16,760 et Cash Provided by Investing Activities sh Flows from Financing Activities 18,060 2,0 10,260 etirement of Notes Payabl Tssuance of Common St Payment of Cash Dividend 6,260 et Cash Used by Financing Activit 17,00 Increase in Cash 3,7 Cash at Beginning of Year 0,7 Cash at End of Year sh at End of Year 0,7 Noncash Investing and Financing Activities Land purchased through issuance of $ of bonds Your answer is correct. Prepare an unclassified balance sheet as it would appear at December 31, 2017, (List Assets in order of liquidity. CRANE INC Balance Sheet ecember 31, 201 Assets Casht 0,7 ccounts Receivable nvestment lant Asset 5,3 7,94 Land 28 $277.5 Liabilities and Stockholders' Equity 3,7 ccounts Payabl otes Payabl onds Payabl 6,7 101 2,4 77,5 mmon St 25,82 etained Earnin Your answer is partially correct. Try again. Compute two cash flow ratios. (Round ratios to 2 decimal places,e.g.o.62. Current cash debt coverage ratio68: Cash debt coverage ratio
