The income statement and unclassified statement of financial position for Crane, Inc. follow: CRANE, INC. Statement of Financial Position December 31 Assets 2018 2017 Cash $99,600 $48,500 Held for trading investments 127,000 112,000 Accounts receivable 77,000 40,700 Inventory 122,000 92,950 Prepaid expenses 18,500 28,000 Property, plant, and equipment 282,000 258,000 Accumulated depreciation (46,000) (52,300) Total assets $680,100 $527,850 Liabilities and Shareholders' Equity Accounts payable $90,000 $78,800 Accrued liabilities 10,800 7,700 Bank loan payable 53,300 175,850 Common shares 280,000 160,000 Retained earnings 246,000 105,500 Total liabilities and shareholders' equity $680,100 $527,850 CRANE, INC. Income Statement Year Ended December 31, 2018 Sales $566,250 185,850 380,400 116,410 263,990 Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $15,000 Interest expense (4,770) Income before income tax Income tax expense Net income 10,230 274,220 46,000 $228,220 Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses. 2. An unrealized gain on held for trading investments of $15,000 was recorded. 3. New equipment costing $90,000 was purchased for $20,400 cash and a $69,600 long-term bank loan payable. 4. Old equipment having an original cost of $66,000 was sold for $1,200. 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 $46,800 of depreciation expense and a $11,700 loss on disposal of equipment. CRANE, INC. Statement of Cash Flows-Direct Method Year Ended December 31, 2018 Cash flows from operating activities Cash receipts from customers $ > Cash Payments To suppliers $ > For operating expenses For interest > For income taxes Net cash provided by operating activities Cash flows from investing activities