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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, 2017

Explanation / 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 $70