The statement of income and unclassified statement of financial position for Crane, Inc. follow: 2020 CRANE, INC. Statement of Financial Position December 31 Assets 2021 Cash $98,800 Trading investments 125,000 Accounts receivable 78,500 Inventory 120,000 Estimated inventory returns 2,200 Prepaid expenses 18.900 Equipment 302.000 Accumulated depreciation (50,000) Total assets $695.400 Liabilities and Shareholders' Equity Accounts payable $93.000 $47,400 114,500 41,900 92,406 1,900 27,800 279.000 (53,600 $551,300 $70,500 Total assets $695,400 $551,300 $70,500 $93,000 10.800 6,500 1,000 700 Liabilities and Shareholders' Equity Accounts payable Property tax payable Refund liability Bank loan payable-current portion Bank loan payable-noncurrent portion Common shares Retained earnings Total liabilities and shareholders' equity 50.000 95.600 151,500 35,600 180.000 200.000 245.000 106,500 $695.400 $551.300 CRANE, INC. Statement of Income Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other income and expenses Unrealized gain on trading investments Interest expense Income before income tax $512,900 186.900 326,000 116,430 209,570 $10,500 (4,760 ) 5.740 215,310 Income tax expense 43.000 Net income $172,310 Additional information regarding 2021: 1. 2. mi o N 00 Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $86,000 was purchased for $21,500 cash and a $64,500 long-term bank loan payable. Old equipment having an original cost of $63,000 was sold for $1,700. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46,300 of depreciation expense and a $11,400 loss on disposal of equipment. Common shares were issued for $41,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. 7. Cash flows from operating activities Net income 17231 Adjustments to reconcile net income to Net decrease in cash. 46300 11400 Loss on disposal of equipment - 10500 Loss on disposal of equipment - 36600 Unrealized gain on trading investments -27600 300 300 Net cash used by operating activities Cash flows from investing activities Purchase of equipment -21500 Proceeds from disposal of equipment > 1700 Net cash used by investing activities -19800 Net cash provided by financing activities Sale of common shares $ -4500 Increase in estimated inventory returns 41000 Repurchase of common shares - 21000 Sale of common shares -4500 Increase in estimated inventory returns 41000 Repurchase of common shares -21000 -33810 -18310 51400 Cash, January 1 47400 Cash, December 31 98800 Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by