The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $302,620 $283,460 Accounts receivable (net) 109,630 101,810 Inventories 309,480 301,410 Investments 0 116,780 Land 158,740 0 Equipment 341,450 266,490 Accumulated depreciation-equipment (79,940) (71,860) Total assets $1,141,980 $998,090 Liabilities and Stockholders' Equity Accounts payable $206,700 $196,620 Accrued expenses payable 20,560 25,950 Dividends payable 11,420 8,980 Common stock, $10 par 61,670 48,910 Paid-in capital: Excess of issue price over par-common stock 231,820 135,740 Retained earnings 609,810 581,890 Total liabilities and stockholders equity $1,141,980 $998,090 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,650,980 Cost of merchandise sold 679,800 Gross profit $971,180 Operating expenses: Depreciation expense $8,080 Other operating expenses 857,420 Total operating expenses 865,500 Operating income $105,680 Other expense: Loss on sale of investments (31,530) Income before income tax $74,150 Income tax expense 23,730 Net income 50,420 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $85,250 cash. The common stock was issued for cash. There was a $22,500 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 20Y6 Cash flows from operating activities: $ Net cash flow from operating activities $ Cash flows from (used for) investing activities: $ Net cash flow used for investing activities Cash flows from (used for) financing activities: $ Net cash flow from financing activities $ Cash at the beginning of the year Cash at the end of the year $
