Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative unclassified statement of financial position for Crane Ltd. follows: CRANELTD. Statement of Financial Position December 31 2021 Assets 2020 Cash $57.000 $28,000 Accounts

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The comparative unclassified statement of financial position for Crane Ltd. follows: CRANELTD. Statement of Financial Position December 31 2021 Assets 2020 Cash $57.000 $28,000 Accounts receivable 80.000 75.500 180,000 190.500 5,000 4,000 72,000 110,000 Inventory Estimated inventory returns Long-term investments Equipment Accumulated depreciation Total assets 260,000 180.000 (72.000) (35.000) 5582.000 5553000 $22.000 $41.500 10.000 5.000 Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders equity 120.000 199.500 215.000 175,000 215.000 132.000 $582.000 5553.000 Additional Information pertaining to 2021 1 Net Income was $106.100 2. Sales were $980.000 3. 4 Cost of goods sold was 5751,000 Operating expenses were $49.000, exclusive of depreciation expense Depreciation expense was 537.000 5 6 7 Interest expense was $13.000 Income tax expense was 529.000 Long-term investments were soldata gain of 55.100 8 9 No equipment was sold during the year 10 $79.500 of the bank loan wasrepaid during the year Common shares were issued for $40.000 11 Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a - signes -45,000, or in parenthesis 2.3. (45,000).) CRANE LTD Statement of Cash Flows-Indirect Method Year Ended December 31, 2018 Cash flows from operating activities Net Income 10610 Adjustments to reconcile net income to Depreciation expense $ 37000 Gain on sale of long-term investments Increase in refund liability 5000 Increase in accounts receivable Decrease in inventory 10500 Increase in estimated inventory returns Decrease in accounts payat Netcash provided by operating activities Cinh flows from investing activities Proceeds from sale of long term investments 100 Purchase of equipment Nethed by investing activites Cath flows from facing activities Repayment of bank loan of common shares Payment of cash dividende Nechty hinancing activities Metinere in cash Cut, January CRANE LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Cashflows from operating activities 10610 Net income Adjustments to reconcile net income to Depreciation expense 37000 Gain on sale of lons-term investments Increase in refund ability . 5000 Increase in accounts receivable 10500 Decrease in inventory Increase in estimated mentory returns Decrease in accounts payable Netcash provided by operating activities : 1200 1100 Cashflows from investing activities Proceeds from sale of long-term investments Purchase of equipment Net Cash used by investing activities Cath news from Francine activities Repayment of bank loan sue of common shares Payment of cash dividends Netcaused by financing activities Net increase in cash Cash January La Cash December 33 CRANE LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 ash flows from operating activities et income 136100 ustments to reconcile net income to epreciation expense ain on sale of long-term investments crease in refund liability 3000 10500 crease in accounts receivable ecrease in inventory crease in estimated Inventory returns ecrease in accounts payable et cash provided by operating activities 500 attinews from investing activities oceeds from salotong term investments archase of equipment et cast used by investing activities . shows from branding activities Payment of bank loan sue of common stures Syment of candidende etcash used by an invities increase in the 1 sh December 31 7000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bookkeeping And Auditing A Career Guide

Authors: Harry Watts

1st Edition

1639878106, 1639878106

More Books

Students also viewed these Accounting questions