Selected financial statement information and additional data for Crane Co. is presented below. December 31 2019 2020 Cash $38,000 $65,500 Accounts receivable (net) 84,000 144,000 Inventory 169,000 205,000 Land 57,000 19,000 Equipment 505,000 787,000 TOTAL $853,000 $1,220,500 Accumulated depreciation $86,000 $117,000 Accounts payable 51,000 87,000 Notes payable - short-term 66,000 30,000 Notes payable - long-term 169,000 300,000 Common stock 415,000 483,000 Retained earnings 66,000 203,500 TOTAL $853,000 $1,220,500 Additional data for 2020: 1. Net income was $219,000. 2. Depreciation was $31,000. 3. Land was sold at its original cost. 4. Dividends of $81,500 were paid. 5. Equipment was purchased for $83,000 cash. 6. A long-term note for $199,000 was used to pay for an equipment purchase. 7. Common stock was issued to pay a $68,000 long-term note payable. Prepare a statement of cash flows for the year ending December 31, 2020.

Explanation:              

Given Data:

                                                       December 31

                                                   2019                    2020

Cash                                        $38,000              $65,500

Accounts receivable (net)       84,000               144,000

Inventory                                  169,000             205,000

Land                                         57,000               19,000

Equipment                               505,000            787,000

TOTAL                                     $853,000          $1,220,500

Accumulated depreciation      $86,000          $117,000

Accounts payable                     51,000             87,000

Notes payable - short-term      66,000            30,000

Notes payable - long-term       169,000           300,000

Common stock                          415,000           483,000

Retained earnings                    66,000             203,500

TOTAL                                       $853,000        $1,220,500

Additional data for 2020:

1. Net income was $219,000.

2. Depreciation was $31,000.

3. Land was sold at its original cost.

4. Dividends of $81,500 were paid.

5. Equipment was purchased for $83,000 cash.

6. A long-term note for $199,000 was used to pay for an equipment purchase.

7. Common stock was issued to pay a $68,000 long-term note payable.

                              Statement of cash flows

                    For the year ending December, 2020

Cash flows from operating activities:

Net income                                                                                 $219,000

Adjustments to reconcile net income to

net cash flows from operating activities:

Add:

Depreciation expenses                                          $31,000

Increase in account payable (87,000-51,000)      $36,000 

Less:

Increase in account receivable(84,000-144,000) -$60000        

Increase in inventory (169,000 - 205,000)           -$36000      

Decrease in note payable-long term                      $0

(300,000- 169,000 - $199,000 + $68,000)    

Decrease in note payable- short term                  -$36,000

(30,000 -66,000)

Net cash flow from operating activities                                  -$65,000  

   154,000                        

Cash flow from investing activities:

Land sold ( 57,000- 19,000)                                $38,000

Equipment purchase                                           -$83,000    -$45000

Cash flow from financing activities:

Dividend paid                                                                                           -$81,500

Net increase in cash                                                                  $27,500

Add: Beginning cash balance                                                            $38,000

Ending cash balance                                                                  $65,500

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

answer; planning;