Exercise 23-17 (Part Level Submission) Crane Inc, had the following condensed ba

Question

Exercise 23-17 (Part Level Submission) Crane Inc, had the following condensed balance sheet at the end of operations for 2016. CRANE INC BALANCE SHEET DECEMBER 31, 2016 Cash Current assets other than cash Equity investments Plant assets (net) Land $8,600 29,200 19,900 66,800 Common stock 40,400 Retained earnings $15,200 25,600 25,000 75,000 24,100 $164,900 Current liabilities Long-term notes payable Bonds payable $164,900 During 2017, the following occurred. . A tract of land was purchased for $8,900 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,400 were paid to stockholders. 5. Net income was $30,300 after allowing depreciation of $13,700. 6. Land was purchased through the issuance of $22,B00 in bonds. 7. Crane Inc. sold part of its investment portfolio for $12.900. This transact on resulted in gain of B. Both current assets (other than cash) and current liabilities remained at the same amount. 1,900 for the company. ND unrealized gains or losses were recorded on these investmerts in 2017 (a) Prepare a statement of cash flows for 2017 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).) CRANEINC Statement of Cash Rows Adjustments to reconcile net income to

Explanation / Answer

CRANE INC Cash Flow Statement For the year ended December 31, 2017 Cash flows from operating activities Net Income $   30,300 Adjustment to reconcile net income to: Depreciation expense $   13,700 Gain on sale of investment $   (1,900) $   11,800 Net cash provided by operating activities $   42,100 Cash flows from investing activities Proceeds from sale of investment $   12,900 Purchase of tract of land $   (8,900) Net cash provided by investing activities $      4,000 Cash flows from financing activities Repayment of bonds $ (15,000) Proceeds from issue of stock $   10,000 Dividend paid $   (9,400) Net cash used by financing activities $ (14,400) Net increase in cash and cash equivalents $   31,700 Cash and cash equivalents at beginning of period $      8,600 Cash and cash equivalents at end of period $   40,300 Non cash investing and financing activities Issue of bonds for land $   22,800

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