CULLUMBER INC.

STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2017
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation expense $ 23,930
Amortization of copyright $ 3,300
Gain on sale of equipment -$ 2,000
Decrease in inventories $ 19,800
Increase in prepaid rent -$ 1,000
Increase in accounts receivable -$ 10,200
Increase in salaries and wages payable $ 4,100
Increase in accounts payable $ 6,300
Decrease in income taxes payable -$ 1,900
Net cash provided by operating activities

Cash flows from investing activities:

Sale of equipment [($19,900 X 30%) + $2,000]
Purchase of equipment
Purchase of available-for-sale investments
Net cash used by investing activities

Cash flows from financing activities:

Principal payment on short-term loan
Principal payment on long-term loan
Dividend payments
Net cash used by financing activities
Net decrease in cash
Cash, January 1, 2016
Cash, December 31, 2017

Supplemental disclosures of cash flow information:

Cash paid during the year for:
Interest $ 11,500
Income taxes $ 8,550
$ 26,600

$ 42,330
$ 68,930

$ 7,970 5970
-$ 44,300 7970
-$ 17,200
-$ 53,530

-$ 2,100
-$ 8,500
-$ 5,900
-$ 16,500
-$ 1,100
$ 7,000
$ 5,900
 CRANE INC. CRANE INC.
COMPARATIVE BALANCE SHEET INCOME STATEMENT
AS OF DECEMBER 31, 2017 AND 2016 FOR THE YEAR ENDING DECEMBER 31, 2017
12/31/17 12/31/16 Sales revenue
Cash $ 5,900 $ 7,000 Cost of goods sold
Accounts receivable 61,500 51,300 Gross profit
Short-term debt investments (available-for-sale) 35,000 17,800 Operating expenses
Inventory 40,400 60,200 Operating income
Prepaid rent 5,000 4,000 Interest expense
Equipment 153,400 129,000 Gain on sale of equipment
Accumulated depreciationequipment -35,100 -25,100 Income before tax
Copyrights 46,300 49600 Income tax expense
Total assets $ 312,400 $ 293,800 Net income

Accounts payable $ 46,500 $ 40,200

Income taxes payable 4,100 6,000
Salaries and wages payable 8,100 4,000
Short-term loans payable 7,900 10,000
Long-term loans payable 60,200 68,700
Common stock, $10 par 100,000 100,000
Contributed capital, common stock 30,000 30,000
Retained earnings 55,600 34900
Total liabilities & stockholders' equity $ 312,400 $ 293,800
 CRANE INC.
COME STATEMENT
R ENDING DECEMBER 31, 2017
$ 338,750
176,400
162,350
119,600
42,750
$ 11,500
2,000 9,500
33,250
6,650
$ 26,600

6250
152400

-13750
166150