Crane Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the followinginformation.CashAccounts receivableInventoryEquity investmentsBuildingsEquipmentCopyrightsTotalsAllowance for doubtful accountsAccumulated depreciation-equipmentAccumulated depreciation-buildingsAccounts payableDividends payableNotes payable, short-term (nontrade)December 3120252024$12,8009,90010,0003,10029,60040,40020,2005,0005,200$108,300 $90,800$38,90012,20011,800-0--0-$3,0002,000-0-5,000-0-3,000$4,6004,5005,9004,0004,9004,000 Common stockRetained earningsAdditional data related to 2025 are as follows.1.2.3.4.5.6.38,00021,300$108,3007.33,0004,900$90,800Equipment that had cost $10,900 and was 30% depreciated 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 $4,900.On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,800 (netof $4,000 taxes).Equity investments (ownership is less than 20% of total shares) were sold at $1,600 above their cost. No unrealized gains orlosses were recorded in 2025.Cash of $15,100 and a long-term note for $16,000 were given for the acquisition of equipment.Interest of $1,900 and income taxes of $5,000 were paid in cash.(a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Crane. (Show amounts thatdecrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)CRANE CORPORATIONStatement of Cash FlowsFor the Year Ended December 31, 2025

The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

Answered: Crane Corporation has contracted with…

Crane Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSB: Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance...

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