Shown below are the comparative statements of financial position and statement of income for Crane Corporation. Crane Corporation Statement of Financial Position As at May 31 2022 2021 Current assets Cash 36,600 33,280 Accounts receivable 77,840 57,800 Inventory 196,200 206,960 Prepaid rent 9,200 7,280 Total current assets 319,840 305,320 Property, plant, and equipment 673,400 521,560 Less: Accumulated depreciation 156,000 126,880 Net PPE 517,400 394,680 Total assets 837,240 700,000 Current liabilities 127,920 119,600 Accounts payable Salaries and wages payable 63,440 74,880 25,640 23,480 Interest payable Total current liabilities 217,000 217,960 78,000 104,000 Mortgage payable Total liabilities 295,000 321,960 Shareholders' equity Common shares 402,280 291,200 Retained earnings 139,960 86,840 Total shareholders' equity 542,240 378,040 Total liabilities and shareholders' equity 837,240 700,000 Crane Corporation Statement of Income For the Year Ended May 31, 2022 Sales 1,560,000 Cost of goods sold 852,800 Gross margin 707,200 Expenses Salaries and wages expense 214,240 Interest expense 46,800 Other operating expenses 33,280 Depreciation expense 29,120 Total operating expenses 323,440 Income from Operations 383,760 Income tax expense 64,480 Net Income 319,280 The following is additional information about transactions during the year ended May 31, 2022, for Crane Corporation. 1. Equipment costing $151,840 was purchased by paying cash. 2. The "other operating expenses" relate to prepaid rent. 3. In order to supplement its cash, Crane issued 26,000 additional common shares. 4. Cash dividends of $266,160 were declared and paid at the end of the fiscal year. Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).) CRANE CORPORATION Statement of Cash Flows For the Year Ended May 31, 2022 Cash flows from operating activities Net income $ Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense Increase in accounts receivable Decrease in inventory Increase in prepaid rent Taman Increase in accounts payable Decrease in salaries and wages payable Increase in interest payable HI Net cash provided by operating activities Cashflows from investing activities Purchase of equipment LA Net cash used by investing activities Cash flows from financing activities Issue of common shares $ $ Payment of mortgage Payment of cash dividends Net cash used by financing activities NON INOD Net increase in cash Cash, April 1, 2021 Cash, May 31, 2022 $