Reference no: EM132482267
Crane Corporation, which uses IFRS, has contracted to prepare statement of cash flows. The controller has provided the following information:
December 31- 2020; 2019
Cash $38,550; $13,000
Accounts receivable 11,600; 9,890
Inventory 10,500; 9,110
FV-NI Investments 0; 2,300
Land 5,000; 5,000
Buildings 0; 28,200
Equipment 35,500; 13,500
Patent 14,000; 14,000
Allowance for doubtful accounts $1,400; $1,500
Accumulated depreciation-equipment 2,200; 3,900
Accumulated depreciation-buildings 0; 5,700
Accumulated amortization-patents 9,000 ; 7,750
Accounts payable 4,400 3,900
Dividends payable 0; 6,000
Notes payable, short-term (non-trade) 3,400 ; 4,000
Long-term notes payable 30,050; 24,250
Share capital 43,000; 33,000
Retained earnings 21,700; 5,000
Additional information related to 2020 is as follows:
1. Equipment that cost $10,100 and was 50% depreciated at the time of disposal was sold for $2,600.
2. Common shares were issued to pay $10,000 of the long-term note payable.
3. Cash dividends paid were $6,000. Crane has adopted the policy of classifying dividends paid as operating activities.
4. On January 1, 2020, a flood destroyed the building. Insurance proceeds on the building were $23,000.
5. FV-NI investments in shares were sold at $3,900 above their cost. The fair value of these investments at December 31, 2019, equalled their original cost.
6. Cash of $16,300 was paid to acquire equipment.
7. A long-term note for $15,800 was issued in exchange for equipment.
8. Interest of $2,200 and income tax of $5,600 were paid in cash. Crane has adopted the policy of classifying interest paid as financing activities.
Question 1: to prepare statement of cash flows for Crane based on the format on the pictures
Question 2: to prepare reconciliation of the change in the property, plant, and equipment's carrying amount to the amounts appearing on the statement of cash flows