Exercise 2311 Condensed financial data of Crane Company for

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

Solution

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