The financial statements of Crane Ltd., a private company reporting under ASPE, follow: Assets Cash CRANE...

    

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The financial statements of Crane Ltd., a private company reporting under ASPE, follow: Assets Cash CRANE LTD. Balance Sheet December 31 Short-term notes receivable Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity 2024 $11,520 17,960 35,840 37,120 93,400 (38,400) $157,440 $32,000 3,840 19,200 32,000 70,400 $157,440 2023 $12,800 29,480 17,920 32,000 99,800 (30,720) $161,280 $55,040 25,600 12,800 32,000 35,840 $161,280 Sales CRANE LTD. Income Statement Year Ended December 31, 2024 Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Other revenues and expenses Interest revenue Interest expense Profit before income tax Income tax expense Profit for the year Additional information: $48,640 2,560 $(1,280) 2,560 $366,080 248,320 117,760 51,200 66,560 1,280 65,280 19,200 $46,080 Additional information: Short-term notes receivable are loans to other companies. During the year, the company collected the balance outstanding at December 31, 2023, and made new loans in the amount of $17,960. 1. 2. 3. 4. 5. 6. Equipment was sold during the year. This equipment cost $19,200 originally and had a carrying amount of $12,800 at the time of sale. Equipment costing $12,800 was purchased in exchange for a $12,800 note payable. Depreciation expense is included in operating expenses. Accounts receivable are from the sale of merchandise on credit. Accounts payable relate to the purchase of merchandise on credit. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CRANE LTD. Cash Flow Statement The financial statements of Crane Ltd., a private company reporting under ASPE, follow: Assets Cash CRANE LTD. Balance Sheet December 31 Short-term notes receivable Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity 2024 $11,520 17,960 35,840 37,120 93,400 (38,400) $157,440 $32,000 3,840 19,200 32,000 70,400 $157,440 2023 $12,800 29,480 17,920 32,000 99,800 (30,720) $161,280 $55,040 25,600 12,800 32,000 35,840 $161,280 Sales CRANE LTD. Income Statement Year Ended December 31, 2024 Cost of goods sold Gross profit Operating expenses Loss on sale of equipment Profit from operations Other revenues and expenses Interest revenue Interest expense Profit before income tax Income tax expense Profit for the year Additional information: $48,640 2,560 $(1,280) 2,560 $366,080 248,320 117,760 51,200 66,560 1,280 65,280 19,200 $46,080 Additional information: Short-term notes receivable are loans to other companies. During the year, the company collected the balance outstanding at December 31, 2023, and made new loans in the amount of $17,960. 1. 2. 3. 4. 5. 6. Equipment was sold during the year. This equipment cost $19,200 originally and had a carrying amount of $12,800 at the time of sale. Equipment costing $12,800 was purchased in exchange for a $12,800 note payable. Depreciation expense is included in operating expenses. Accounts receivable are from the sale of merchandise on credit. Accounts payable relate to the purchase of merchandise on credit. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CRANE LTD. Cash Flow Statement