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The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

1		Dec. 31, 20Y6	Dec. 31, 20Y5
2	Assets
3	Cash	$643,400.00	$679,400.00
4	Accounts receivable (net)	566,800.00	547,400.00
5	Inventories	1,011,000.00	982,800.00
6	Investments	0.00	240,000.00
7	Land	520,000.00	0.00
8	Equipment	880,000.00	680,000.00
9	Accumulated depreciation	(244,400.00)	(200,400.00)
10	Total assets	$3,376,800.00	$2,929,200.00
11	Liabilities and Stockholders Equity
12	Accounts payable (merchandise creditors)	$771,800.00	$748,400.00
13	Accrued expenses payable (operating expenses)	63,400.00	70,800.00
14	Dividends payable	8,800.00	6,400.00
15	Common stock, $2 par	56,000.00	32,000.00
16	Paid-in capital in excess of parcommon stock	408,000.00	192,000.00
17	Retained earnings	2,068,800.00	1,879,600.00
18	Total liabilities and stockholders equity	$3,376,800.00	$2,929,200.00

The income statement for the year ended December 31, 20Y6, is as follows:

1	Sales		$5,980,000.00
2	Cost of goods sold		(2,452,000.00)
3	Gross profit		$3,528,000.00
4	Operating expenses:
5	Depreciation expense	$44,000.00
6	Other operating expenses	3,100,000.00
7	Total operating expenses		(3,144,000.00)
8	Operating income		$384,000.00
9	Other expense:
10	Loss on sale of investments		(64,000.00)
11	Income before income tax		$320,000.00
12	Income tax expense		(102,800.00)
13	Net income		$217,200.00

Additional data obtained from an examination of the accounts in the ledger for 20Y6 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 $176,000 cash.
	d. The common stock was issued for cash.
	e. There was a $28,000 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the direct method of presenting cash flows from (used for) operating activities.

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