Question 1 View Policies Current Attempt in Progress The income statement and unclassified statement of financial position for Crane, Inc. follow: CRANE, INC Statement of Financial Position December 31 Assets 2018 2017 $98,400 $47,300 Cash Held for trading investments 114,000 130,000 70,500 40,800 Accounts receivable Inventory 122,000 93,450 Prepaid expenses 19,000 27,400 255,500 283,000 Property, plant, and equipment (46,500) Accumulated depreciation (52,200 $676,400 $526,250 Total assets Liabilities and Shareholders' Equity Accounts payable $92,000 $72,200 7,300 Accrued liabilities 12,000 Bank loan payable 130,400 155,750 200,000 Common shares 170,000 Retained earnings 121,000 242,000 $676,400 $526,250 Total liabilities and shareholders' equity CRANE, INC. Income Statement Year Ended December 31, 2018 Sales $562,400 185,400 Cost of goods sold Gross profit 377,000 Operating expenses 116,460 Income from operations 260,540 Other revenues and expenses $16,000 Unrealized gain on held for trading investments Interest expense (4,760) 11,240 Income before income tax 271,780 Income tax expense 48,000 $223,780 Net income Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. An unrealized gain on held for trading investments of $16,000 was recorded. 2. New equpment costing $84,000 was purchased for $22,600 cash and a$61,400 long-term bank loan payable. Old equipment having an original cost of $56,500 was sold for $1,900 3. 4. 5. Accounts payable relate to merchandise creditors. 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. a) Prepare the statement of cash flows, using the direct method. (SHOW amounts that decrease cash flow with either a- sign eg.-15,000 or in parenthesis eg. (15,000). CRANE, INC. Statement of Cash Flows-Direct Method Cash Payments $ by paying $22,600 cash and issuing a $61,400 bank loan payable. Note Xto the Statement of Cash Flows: During the year, the company purchased equipment costing $