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Statement of Cash Flows-Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is as follows: Dec 31, 2016 Dec. 31, 2015 $272.890 98,860 279,060 Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation equipment Total assets 5252,390 90,650 268.380 103,980 143,140 307,900 (72,080) $1,029,770 237,280 (63,990) SBBB.690 $175,070 23,110 8,000 43,550 120,860 518,100 $888,690 Liabilities and Stockholders' Equity Accounts payable $186,390 Accrued expenses payable 18,540 Dividends payable 10,300 Common stock, $10 par 55,610 Paid-in capital: Excess of issue price over par-common stock 209,040 Retained earnings 549,890 Total liabilities and stockholders' equity $1,029,770 The income statement for the year ended December 31, 2016, is as follows: Sales $1,628,330 Cost of merchandise sold 670,500 Gross profit $957,830 Operating expenses: Depreciation expense $8,090 Other operating expenses 845,510 Total operating expenses 853,600 Operating income $104,230 Other expense: Loss on sale of investments (28,070) Income before income tax $76,160 Income tax expense 24,370 Net income $51,790 Additional data obtained from an examination of the accounts in the lediger for 2016 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $75,910 cash d. The common stock was issued for cash e. There was a $20,000 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 outflows, cash payments, decreases in cash, or any negative adjustments. 83,031 Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Cash received from customers 1,650, 120 Cash payments for merchandise 669,860 Cash payments for operating expenses 850 OBO Cash payments for income taxes 24,370 Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments * 75,910 Cash used for purchase of land 143,140 Cash used for purchase of equipment 70,620 Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock 100,240 Cash used for dividends 17,700 x 137,850 Net cash flow from financing activities 82,540 Increase in cash X 27,721 Cash at the beginning of the year 252.390 Cash at the end of the year 224,669

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