The following are financial statements of Crane Company. Crane Company Income Statement For the Year Ended December 31, 2022 Net sales $2,192,500 Cost of goods sold 1,010,500 Selling and administrative expenses 900,500 Interest expense 78,000 Income tax expense 62,500 Net income $ 141,000 Crane Company Balance Sheet December 31, 2022 Assets Current assets Cash $ 55,100 Debt investments 89,000 Accounts receivable (net) 168,400 Inventory 236,500 Total current assets 549,000 Plant assets (net) 572,500 Total assets $ 1,121,500 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 152,000 Income taxes payable 31,000 Total current liabilities 183,000 Bonds payable 220,740 Total liabilities 403,740 Stockholders’ equity Common stock 345,000 Retained earnings 372,760 Total stockholders’ equity 717,760 Total liabilities and stockholders’ equity $1,121,500 Additional information: The net cash provided by operating activities for 2022 was $192,700. The cash used for capital expenditures was $91,000. The cash used for dividends was $31,700. The weighted-average common shares outstanding during the year was 50,000. (a) Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (i) Working capital. (2021: $160,500) (ii) Current ratio. (2021: 1.65:1) (iii) Free cash flow. (2021: $48,700) (iv) Debt to assets ratio. (2021: 31%) (v) Earnings per share. (2021: $3.15) (i) Working capital $enter a dollar amount (ii) Current ratio enter amount rounded to 2 decimal places :1 (iii) Free cash flow $enter a dollar amount (iv) Debt to assets ratio enter percentages rounded to 1 decimal place % (v) Earnings per share $enter a dollar amount rounded to 2 decimal places

The following are financial statements of Crane Company. Crane Company Income Statement For the Year Ended December 31, 2022 Net sales $2,192,500 Cost of goods sold 1,010,500 Selling and administrative expenses 900,500 Interest expense 78,000 Income tax expense 62,500 Net income $ 141,000 Crane Company Balance Sheet December 31, 2022 Assets Current assets Cash $ 55,100 Debt investments 89,000 Accounts receivable (net) 168,400 Inventory 236,500 Total current assets 549,000 Plant assets (net) 572,500 Total assets $ 1,121,500 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 152,000 Income taxes payable 31,000 Total current liabilities 183,000 Bonds payable 220,740 Total liabilities 403,740 Stockholders’ equity Common stock 345,000 Retained earnings 372,760 Total stockholders’ equity 717,760 Total liabilities and stockholders’ equity $1,121,500 Additional information: The net cash provided by operating activities for 2022 was $192,700. The cash used for capital expenditures was $91,000. The cash used for dividends was $31,700. The weighted-average common shares outstanding during the year was 50,000. (a) Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (i) Working capital. (2021: $160,500) (ii) Current ratio. (2021: 1.65:1) (iii) Free cash flow. (2021: $48,700) (iv) Debt to assets ratio. (2021: 31%) (v) Earnings per share. (2021: $3.15) (i) Working capital $enter a dollar amount (ii) Current ratio enter amount rounded to 2 decimal places :1 (iii) Free cash flow $enter a dollar amount (iv) Debt to assets ratio enter percentages rounded to 1 decimal place % (v) Earnings per share $enter a dollar amount rounded to 2 decimal places

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 13.3BE

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Question 1

The following are financial statements of Crane Company.

Crane Company Income Statement For the Year Ended December 31, 2022
Net sales		$2,192,500
Cost of goods sold		1,010,500
Selling and administrative expenses		900,500
Interest expense		78,000
Income tax expense		62,500
Net income		$ 141,000

Crane Company Balance Sheet December 31, 2022
Assets
Current assets
Cash		$ 55,100
Debt investments		89,000
Accounts receivable (net)		168,400
Inventory		236,500
Total current assets		549,000
Plant assets (net)		572,500
Total assets		$ 1,121,500
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 152,000
Income taxes payable		31,000
Total current liabilities		183,000
Bonds payable		220,740
Total liabilities		403,740
Stockholders’ equity
Common stock		345,000
Retained earnings		372,760
Total stockholders’ equity		717,760
Total liabilities and stockholders’ equity		$1,121,500

Additional information: The net cash provided by operating activities for 2022 was $192,700. The cash used for capital expenditures was $91,000. The cash used for dividends was $31,700. The weighted-average common shares outstanding during the year was 50,000.

(a)

Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(i)		Working capital. (2021: $160,500)
(ii)		Current ratio. (2021: 1.65:1)
(iii)		Free cash flow. (2021: $48,700)
(iv)		Debt to assets ratio. (2021: 31%)
(v)		Earnings per share. (2021: $3.15)

(i)	Working capital	$enter a dollar amount
(ii)	Current ratio	enter amount rounded to 2 decimal places	:1
(iii)	Free cash flow	$enter a dollar amount
(iv)	Debt to assets ratio	enter percentages rounded to 1 decimal place	%
(v)	Earnings per share	$enter a dollar amount rounded to 2 decimal places

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