Exercise 23-11 Condensed financial data of Crane Company for 2017 and 2016 are p
ID: 2603561 • Letter: E
Question
Exercise 23-11 Condensed financial data of Crane Company for 2017 and 2016 are presented below CRANE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2016 $1,790$1,140 1,290 1,900 1,740 2017 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 1,750 1,590 1,920 (1,170) (1,150) 1,320 1,420 $7,200 $6,340 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,220 200 1,400 1,940 2,440 $7,200 $880 250 1,530 1,700 1,980 $6,340 CRANE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017Explanation / Answer
Issuance of Common Stock = $1,940 - $1,700 - $70
.............................................= $170
Purchase of Plant Assets = $1,920 - $1,740 - $70
..........................................= $110
CRANE COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities Net Income $720 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $20 Gain on Sale of Investments ($80) Decrease in Inventory $310 Increase in Accounts Payable $340 Increase in Accounts Receivable ($460) Decrease in Accrued Liabilities ($50) $80 Net Cash Provided by Operating Activities $800 Cash Flows from Investing Activities Sale of Long term Investments $180 Purchase of Plant Assets ($110) Net Cash Provided by Investing Activities $70 Cash Flows from Financing Activities Issuance of Common Stock $170 Redemption of Bonds Payable ($130) Payment of Cash Dividends ($260) Net Cash Used By Financing Activities ($220) Net Increase in Cash $650 Cash at beginning of period $1,140 Cash at End of Period $1,790 Non Cash and Financing Activities Issuance of Common Stock for Plant Assets $70Related Questions
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