Question 1 The following are the financial statements of Crane Company. CRANE COMPANY Balance Sheet December 31 Assets 2021 2020 Cash $46,360 $24,400 Accounts receivable 36,600 17,080 Inventory 32,940 24,400 Equipment 73,200 95,160 Accumulated depreciation-equipment (35,380) (29,280) Total $153,720 $131,760 Liabilities and Shareholders' Equity Accounts payable $29,280 $18,300 Income taxes payable 8,540 9,760 Notes payable 32,940 40,260_ Common shares 21,960 17,080 Retained earnings 61,000 46,360 Total $153,720 $131,760 CRANE COMPANY Income Statement For the Year Ended December 31, 2021 Sales $295,240 Cost of goods sold 213,500 Gross profit 81,740 Operating expenses 29,280 Income from operations 52,460 Interest expense 3,660 Income before income taxes 48,800 Income tax expense 9,760 Profit $39,040 Additional Information: 1. Dividends dedared and paid were $24,400. Crane reports under ASPE, 2. During the year, equipment was sold for $10,370 cash. This equipment cost $21,960 originally and had a carrying value of $10,370 at the time of sale. 3 All depreciation expense, $17,690, is in the operating expenses. 4. All sales and purchases are on account. ta) 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 og CRANE COMPANY Cash Flow Statement - Indirect Method Adjustments to reconcile profit to v > > >