The income statement and unclassified statement of financial position for Crane, Inc. follow: CRANE, INC. Statement of Financial Position December 31 Assets 2018 Cash $98,400 Held for trading investments 130,000 Accounts receivable 70,500 Inventory 122,000 Prepaid expenses 19,000 Property, plant, and equipment 283,000 Accumulated depreciation (46,500) Total assets $676,400 Liabilities and Shareholders' Equity Accounts payable $92,000 Accrued liabilities 12,000 Bank loan payable 130,400 Common shares 200,000 Retained earnings 242,000 Total liabilities and shareholders' equity $676,400 2017 $47,300 114,000 40,800 93,450 27,400 255,500 (52,200 ) $526,250 $72,200 7,300 155,750 170,000 121,000 $526,250 CRANE, INC. Income Statement Year Ended December 31, 2018 Sales $562,400 185,400 377,000 116,460 260,540 Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $16,000 Interest expense (4,760 ) Income before income tax Income tax expense Net income 11,240 271,780 48.000 $223,780 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $16,000 was recorded. 3. New equipment costing $84,000 was purchased for $22,600 cash and a $61,400 long-term bank loan payable. 4. Old equipment having an original cost of $56,500 was sold for $1,900. 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $46,300 of depreciation expense and a $2,600 loss on disposal of equipment. (a) Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a - signes - 15.000 or in parenthesiseg. (15.000).) CRANE, INC. Statement of Cash Flows-Direct Method $ Cash Payments $ $ $ $ Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by paying $22,600 cash and issuing a $61,400 bank loan payable