Question 36 (26 points) Saved The comparative unclassified statement of financial position for Crane Ltd. follows: CRANE LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $51,000 $23,000 Accounts receivable 86,000 65,500 Inventory 175,000 196,000 Long-term investments 74,000 130,000 Equipment 265,000 154,000 Accumulated depreciation (60,000) (30,000) Total assets $591,000 $538,500 Liabilities and Shareholders' Equity Accounts payable $30,000 $ 52,500 Bank loan payable 159,000 174,000 Common shares 201,000 177,000 Retained earnings 201,000 135,000 Total liabilities and shareholders' equity $591,000 $538,500 Additional information: Liabilities and Shareholders' Equity Accounts payable $30,000 $52,500 Bank loan payable 159,000 174,000 Common shares 201,000 177,000 Retained earnings 201,000 135,000 Total liabilities and shareholders' equity $591,000 $538,500 Additional information: 1. Net income was $142,700. 2. Sales were $1,000,000. 3. Cost of goods sold was $751,000. 4. Operating expenses were $40,000, exclusive of depreciation expense. 5. Depreciation expense was $30,000. 6. Interest expense was $15,000. 7. Income tax expense was $27,000. 8. Long-term investments were sold at a gain of $5,700. 9. No equipment was sold during the year. 10. $15,000 of the bank loan was repaid during the year. 11. Common shares were issued for $24,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) uelitas Las HUW WILII CILITEI 0 - Sigh e.g. --JUVU, UI III Palenie t.8. 1943, UUM:/ Format V COMPANY Statement of Cash flows-indirect method Year ended Dec 31, 2018 Cash flow from operating activities Net income: I Adjustments to net income: Adjustment: Adjustment: Adjustment: Adjustment: Adjustment: Total Adjustments: Net Cash provided by operating activities: Cash flows from investing activities Adismanto 1 Total Adjustments: Net Cash provided by operating activities: Cash flows from investing activities Adjustment: Adjustment: Total Adjustments: Net Cash used by investing activities Cash flows from financing activities Adjustment: Adjustment: Adjustment: Total Adjustments: Net Cash used by financing activities Net increase in cash Cash, Jan 1: beginning Cash, Dec 31: closing