Assignment task: The net changes in the statement of financial position accounts of Crane Inc. for the calendar year 2023 are shown below:
| Account |
Debit |
Credit |
| Cash |
63800 |
|
| Account recivable |
|
31000 |
Allowance for expected credit losses
|
|
7000 |
| Inventory |
110100 |
|
| Prepaid expenses |
10000 |
|
| Long-term investments |
|
73000 |
| Land |
150500 |
|
| Buildings |
301000 |
|
| Machinery |
49000 |
|
| Office equipment |
|
13500 |
|
|
|
|
| Buildings |
|
13500 |
| Machinery |
|
9000 |
| Office equipment |
5000 |
|
| Accounts payable |
91100 |
|
| Accrued liabilities |
|
37000 |
| Dividends payable |
|
64160 |
| Bonds payable |
|
415140 |
| Preferred shares |
32000 |
|
| common shares |
|
191800 |
| Retained earnings |
42600 |
|
| Total |
855100 |
85100 |
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Additional information:
1. Net income for the year was $70,860.
2. Cash dividends of $64,160 were declared December 15, 2023, payable January 15, 2024. A 5% common stock dividend was issued March 31, 2023, when the market value was $22 per share. At the time there were 38,000 common shares outstanding.
3. The long-term investments were sold for $71,000.
4. A building which had cost $239,500, with a book value of $150,500, was sold for $200,500, and a new one was purchased.
5. The following entry was made to record an exchange of an old machine for a new one: Machinery 80,000
Accumulated Depreciation-Machinery 22,000
Machinery 31,000
Cash 71,000
6. A fully depreciated copier machine, which cost $13,500, was written off.
7. Preferred shares originally issued for $32,000 were redeemed for $39,500.
8. Crane sold 6,000 common shares on June 15, 2023 for $25 a share.
9. Bonds were sold at 102 on December 31, 2023.
10. Land with a book value of $122,000 was sold for $56,000.
Prepare a statement of cash flows (indirect method) for calendar 2023. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).)