80.2K

Verified Solution

Link Copied!

prepare a statement of cash flow for crane. use the indirect method

Current Attempt in Progress Crane Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information December 31 2020 2019 Cash $38.200 $13,100 Accounts receivable 12,200 10,100 Inventory 12.100 Equity investments -0- 10,000 3.100 29,900 20,000 Buildings -0- Equipment 39.900 Copyrights 5,100 5.300 Totals $107.500 $91,500 Allowance for doubtful accounts $3,000 $4,600 Accumulated depreciation-equipment 2.000 4.500 Accumulated deprecation-buildings -0- 6.000 Accounts payable 5.100 4000 Dividends payable -0- 5.000 Notes payable short-term (nontrade) 3.100 4,100 -0- 5,000 3.100 4100 Dividends payable Notes payable short-term (nontrade) Long-term notes payable Common stock Retained earnings 36,000 25,000 38,000 33.000 20,300 5.300 $107.500 $91,500 Additional data related to 2020 are as follows. 1 2. 3. 4. Equipment that had cost $11,100 and was 30% deprecated at time of disposal was sold for $2.500 $5,000 of the long-term note payable was paid by issuing common stock Cash dividends paid were $5,000. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,100 (net of $4.100 taxes). Equity investments (ownership is less than 20% of total shares) were sold at $1.500 above their cost. No unrealized gains or losses were recorded in 2020. Cash and a long-term note for $16.000 were given for the acquisition of equipment. Interest of $2.000 and income taxes of $4900 were paid in cash 5 6. 7 (a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Crane (Show amounts that decrease cash flow with either a sign 15.000 or in parenthesis es (15,0001) CRANE CORPORATION Statement of Cash Flows

Answer & Explanation Solved by verified expert

See Answer