The comparative unclassified statement of financial position for Crane Ltd. follows: CRANELTD. Statement of Financial Position December 31 Assets 2021 2020 Cash $57,000 $28.000 Accounts receivable 80,000 75,500 180,000 190.500 Inventory Estimated inventory returns 5,000 4,000 Long-term investments 72,000 110,000 Equipment 260,000 180.000 Accumulated depreciation (72,000) (35,000) Total assets $582,000 $ $553,000 Liabilities and Shareholders' Equity Accounts payable $22,000 $ 41,500 Refund liability 10,000 5.000 Bank loan payable (noncurrent) 120,000 199,500 Common shares 215.000 175.000 Retained earnings 215.000 132,000 Total liabilities and shareholders' equity $582,000 $553,000 Additional information pertaining to 2021 1. Net income was $106.100 2. Sales were $980,000. $ Cost of goods sold was $751,000. 3. 4 Operating expenses were $49.000, exclusive of depreciation expense. Depreciation expense was $37,000. $ 5. 6. Interest expense was $13,000 7. Income tax expense was $29,000. 8. Long-term investments were sold at a gain of $5,100. a 9. No equipment was sold during the year. 10. $79,500 of the bank loan was repaid during the year. 11 Common shares were issued for $40.000 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-signe.g. -45,000, or in a parenthesis eg. (45,000).) CRANE LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Cash flows from operating activities Net Income $ 106100 Adjustments to reconcile net income to Cash flows from operating activities Depreciation expense $ 37000 Gain on sale of long-term Investments V -5000 Increase in accounts recevable Decrease in Inventory Increase in estimated Inventory returns V Increase in accounts payable Increase in refund Itability Net cash provided by operating activities Cash flows from Investing activities $ Net cash used by Investing activities Cash flows from financing activities $ Net cash used by financing activities Net Increase in cash Cash, January 1 Cash, December 31 $