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 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 $562,400 185,400 377,000 116,460 260,540 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. B. Operating expenses include $46,300 of depreciation expense and a $2,600 loss on disposal of equipment. CRANE, INC. Statement of Cash Flows-Direct Method Year Ended December 31, 2018 Cash flows from operating activities For operating expenses Cash Payments > A $ > V $ $ Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by > > > Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by