90.2K

Verified Solution

Link Copied!

Crane Inc. is a private company reporting under ASPE. The following selected account balances were reported in Crane Inc.s financial statements at year end:

		2021		2020
Cash		$ 19,725		$ 9,150
Buildings		859,500		748,000
Equipment		410,000		355,400
Land		108,000		62,250
Accumulated depreciationbuildings		311,500		299,750
Accumulated depreciationequipment		138,000		103,250
Dividends payable		6,900		3,350
Mortgage payable		550,200		590,200
Notes payable		346,500		315,500
Common shares: 5,530 shares in 2021; 4,130 in 2020		545,500		416,500
Retained earnings		214,000		115,000
Cash dividends declared		31,500		15,200
Depreciation expensebuildings		27,750		40,650
Depreciation expenseequipment		48,155		26,300
Gain on sale of equipment		1,030		0
Loss on sale of building		12,100		0
Interest expense		49,550		45,450

Additional information:
1.		Purchased $81,500 of equipment for $12,600 cash and a note payable for the remainder.
2.		Equipment was also sold during the year.
3.		Sold a building that originally cost $56,500.
4.		Used cash to purchase land and a building.
5.		Mortgage payments and notes payable payments included interest and principal amounts.
6.		Common shares were issued for cash.

Determine the amount of any cash inflows or outflows related to investing activities in 2021. (Hint: Use T accounts to calculate the cash flows.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CRANE INC. Cash Flow Statement (Partial) December 31, 2021Month Ended December 31, 2021Year Ended December 31, 2021
Cash, December 31Financing ActivitiesOperating ActivitiesNet Cash Provided by Investing ActivitiesNet Decrease in CashNet Cash Used by Financing ActivitiesInvesting ActivitiesNet Cash Used by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Increase in CashNet Cash Used by Operating ActivitiesNet Cash Provided by Financing ActivitiesCash, January 1
Purchase of LandSale of EquipmentSale of LandRepayment of Mortgage NoteSale of BuildingRepurchase of Common SharesIssuance of Common SharesPurchase of BuildingPayment of Cash DividendsPurchase of Equipment	$
Payment of Cash DividendsSale of BuildingSale of EquipmentPurchase of EquipmentPurchase of BuildingPurchase of LandSale of LandRepayment of Mortgage NoteRepurchase of Common SharesIssuance of Common Shares
Purchase of BuildingSale of BuildingSale of EquipmentSale of LandPurchase of LandPurchase of EquipmentRepayment of Mortgage NoteRepurchase of Common SharesPayment of Cash DividendsIssuance of Common Shares
Purchase of BuildingRepurchase of Common SharesPurchase of EquipmentSale of EquipmentSale of LandIssuance of Common SharesPayment of Cash DividendsSale of BuildingRepayment of Mortgage NotePurchase of Land
Purchase of LandSale of BuildingRepayment of Mortgage NotePurchase of BuildingIssuance of Common SharesRepurchase of Common SharesSale of EquipmentPurchase of EquipmentSale of LandPayment of Cash Dividends
Net Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Decrease in CashNet Cash Used by Operating ActivitiesInvesting ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesCash, January 1Financing ActivitiesNet Cash Provided by Financing ActivitiesNet Increase in CashOperating ActivitiesCash, December 31		$

What was the amount of profit reported by Crane Inc. in 2021?

Amount of profit

$

Determine the amount of any cash inflows or outflows related to financing activities in 2021. (Hint: Use T accounts to calculate the cash flows.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

CRANE INC. Cash Flow Statement (Partial) December 31, 2021Year Ended December 31, 2021Month Ended December 31, 2021
Net Cash Used by Operating ActivitiesFinancing ActivitiesNet Cash Provided by Investing ActivitiesNet Increase in CashNet Decrease in CashInvesting ActivitiesOperating ActivitiesNet Cash Provided by Financing ActivitiesCash, January 1Net Cash Provided by Operating ActivitiesCash, December 31Net Cash Used by Financing ActivitiesNet Cash Used by Investing Activities
Purchase of LandSale of EquipmentPurchase of EquipmentPayment of Cash DividendsPurchase of BuildingIssuance of Common SharesRepayment of NoteRepurchase of Common SharesRepayment of MortgageSale of BuildingSale of Land	$
Issuance of Common SharesPurchase of BuildingRepurchase of Common SharesPurchase of EquipmentSale of LandSale of EquipmentPurchase of LandPayment of Cash DividendsRepayment of NoteRepayment of MortgageSale of Building
Purchase of BuildingRepayment of NotePurchase of EquipmentSale of EquipmentSale of LandPurchase of LandPayment of Cash DividendsRepurchase of Common SharesIssuance of Common SharesRepayment of MortgageSale of Building
Purchase of BuildingIssuance of Common SharesPurchase of LandSale of LandPayment of Cash DividendsRepurchase of Common SharesSale of BuildingPurchase of EquipmentRepayment of MortgageRepayment of NoteSale of Equipment
Investing ActivitiesFinancing ActivitiesCash, December 31Net Cash Provided by Investing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Provided by Financing ActivitiesNet Increase in CashNet Decrease in CashNet Cash Used by Operating ActivitiesOperating ActivitiesCash, January 1Net Cash Provided by Operating ActivitiesNet Cash Used by Financing Activities		$

Identify and determine the amount of any noncash financing activities in 2021.

Equipment costing $ was acquired by paying $ cash and issuing a note payable for $ .

Calculate the cash operating activities. (Hint: Using the cash balances provided, calculate increase or decrease in cash first.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Cash from net cash providedused by operating activities

$

Answer & Explanation Solved by verified expert

See Answer