Question

Crane Inc. is a private company reporting under ASPE. The following selected account balances were reported...

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 $ 18,900 $ 8,600
Buildings 843,000 737,000
Equipment 399,000 346,600
Land 97,000 54,000
Accumulated depreciation—buildings 306,000 291,500
Accumulated depreciation—equipment 127,000 95,000
Dividends payable 6,350 2,800
Mortgage payable 545,800 585,800
Notes payable 341,000 310,000
Common shares: 5,420 shares in 2021; 4,020 in 2020 540,000 411,000
Retained earnings 203,000 104,000
Cash dividends declared 26,000 10,800
Depreciation expense—buildings 25,000 40,100
Depreciation expense—equipment 47,605 25,750
Gain on sale of equipment 920 0
Loss on sale of building 9,900 0
Interest expense 48,450 44,350
Additional information:
1. Purchased $76,000 of equipment for $10,400 cash and a note payable for the remainder.
2. Equipment was also sold during the year.
3. Sold a building that originally cost $51,000.
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.

need to ans this

1.CRANE INC.
Cash Flow Statement (Partial)

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

Amount of profit $

3.CRANE INC.
Cash Flow Statement (Partial)

4.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 $

5.Cash from net cash

by operating activities $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

Cash flow statement (partial) :

Amount of profit reported by Crane Inc. in 2021 = End. R.E. + Dividends - Beginning R.E.

   = $203,000 + $26,000 - $104,000

   = $ 125,000

Cash flow statement (partial) :

Amount of non-cash financing activities = Note payable issued for purchase of equipment

= $76,000 - 10,400

= $ 65,600

Equipment costing $76,000 was acquired by paying $10,400 cash and issuing note payable for $65,600

Cash flow from opreating activities:

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following selected account balances relate to the property, plant, and equipment accounts of Blossom Inc.:...
The following selected account balances relate to the property, plant, and equipment accounts of Blossom Inc.: 2018 2017 Accumulated depreciation—buildings $335,000 $300,000 Accumulated depreciation—equipment 144,000 95,000 Depreciation expense—buildings 35,000 35,000 Depreciation expense—equipment 60,000 49,000 Land 100,000 60,000 Buildings 700,000 700,000 Equipment 300,000 240,000 Gain on disposal (equipment) 4,000 0 Additional information: 1. Purchased $40,000 of land for cash. 2. Purchased $75,000 of equipment for a $10,000 down payment, financing the remainder with a bank loan. Equipment was also sold during...
You are presented with the following alphabetical list of accounts and balances (in thousands) for Sunland...
You are presented with the following alphabetical list of accounts and balances (in thousands) for Sunland Enterprises Inc. at June 30, 2018. All accounts have a normal balance. Accounts payable $ 3,100 Income tax payable $ 100 Accounts receivable 3,000 Interest expense 100 Accumulated depreciation—buildings 3,600 Land 7,600 Accumulated depreciation—equipment 900 Long-term investments 3,800 Buildings 13,900 Inventory 5,200 Cash 1,200 Mortgage payable, due 2025 16,000 Common shares 5,500 Office expense 2,900 Cost of goods sold 14,100 Prepaid insurance 900 Dividends...
The following balances were taken from the books of Vaughn Corp. on December 31, 2020. Interest...
The following balances were taken from the books of Vaughn Corp. on December 31, 2020. Interest revenue $87,700 Accumulated depreciation—equipment $41,700 Cash 52,700 Accumulated depreciation—buildings 29,700 Sales revenue 1,381,700 Notes receivable 156,700 Accounts receivable 151,700 Selling expenses 195,700 Prepaid insurance 21,700 Accounts payable 171,700 Sales returns and allowances 151,700 Bonds payable 101,700 Allowance for doubtful accounts 8,700 Administrative and general expenses 98,700 Sales discounts 46,700 Accrued liabilities 33,700 Land 101,700 Interest expense 61,700 Equipment 201,700 Notes payable 101,700 Buildings 141,700...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable...
Pronghorn Corp.’s statement of financial position at the end of 2019 included the following items: Current...
Pronghorn Corp.’s statement of financial position at the end of 2019 included the following items: Current assets $1,275,000 Current liabilities $994,200 Land 30,700 Bonds payable 1,281,000 Buildings 1,150,000 Common shares 192,000 Equipment 322,000 Retained earnings 189,000 Accumulated depreciation—buildings (149,000 ) Accumulated depreciation—equipment (12,600 ) Intangible assets—patents 40,100 Total $2,656,200 Total $2,656,200 The following information is available for the 2020 fiscal year: 1. Net income was $398,000. Interest paid is classified as operating activities. 2. Equipment (cost of $21,200 and accumulated...
The following balances were taken from the books of Bramble Corp. on December 31, 2020. Interest...
The following balances were taken from the books of Bramble Corp. on December 31, 2020. Interest revenue $87,650 Accumulated depreciation—equipment $41,650 Cash 52,650 Accumulated depreciation—buildings 29,650 Sales revenue 1,381,650 Notes receivable 156,650 Accounts receivable 151,650 Selling expenses 195,650 Prepaid insurance 21,650 Accounts payable 171,650 Sales returns and allowances 151,650 Bonds payable 101,650 Allowance for doubtful accounts 8,650 Administrative and general expenses 98,650 Sales discounts 46,650 Accrued liabilities 33,650 Land 101,650 Interest expense 61,650 Equipment 201,650 Notes payable 101,650 Buildings 141,650...
The following balances were taken from the books of Carla Corp. on December 31, 2017. Interest...
The following balances were taken from the books of Carla Corp. on December 31, 2017. Interest revenue $88,200 Accumulated depreciation—equipment $42,200 Cash 53,200 Accumulated depreciation—buildings 30,200 Sales revenue 1,382,200 Notes receivable 157,200 Accounts receivable 152,200 Selling expenses 196,200 Prepaid insurance 22,200 Accounts payable 172,200 Sales returns and allowances 152,200 Bonds payable 102,200 Allowance for doubtful accounts 9,200 Administrative and general expenses 99,200 Sales discounts 47,200 Accrued liabilities 34,200 Land 102,200 Interest expense 62,200 Equipment 202,200 Notes payable 102,200 Buildings 142,200...
Plant acquisitions for selected companies are as follows. 1. Crane Industries Inc. acquired land, buildings, and...
Plant acquisitions for selected companies are as follows. 1. Crane Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $ 798,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $ 228,000 $ 171,000 Buildings 285,000 399,000 Equipment 342,000 342,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry...
Plant acquisitions for selected companies are as follows. 1. Teal Industries Inc. acquired land, buildings, and...
Plant acquisitions for selected companies are as follows. 1. Teal Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $994,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $284,000 $213,000 Buildings 355,000 497,000 Equipment 426,000 426,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account...
Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the company’s general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position): Cash                                                                    $     3,700 Accounts receivable                                                   5,900 Supplies inventory                                                    29,300 Land                                                                        168,500   Buildings                                                                 116,500 Accumulated depreciation, buildings                       37,500    Equipment                                                                 58,500 Accumulated depreciation, equipment                     18,000 Accounts payable                                                      25,200 Income tax payable                                                   16,600 Interest payable                                                           4,200 Wages payable...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT