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1. PR.13-04.ALGO Statement of Cash Flows-Direct Method 2. PR.13-02.ALGO The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as
1. PR.13-04.ALGO Statement of Cash Flows-Direct Method 2. PR.13-02.ALGO The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 3. PR.13-03.ALGO Assets 4. PR.13-01.ALGO Cash $238,840 $220,390 Accounts receivable (net) 86,520 79,150 Inventories 244,260 234,360 Investments 90,790 Land 125,280 Equipment 269,490 207,200 (63,090) Accumulated depreciation (55,870) $901,300 $776,020 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $163,140 $152,880 Accrued expenses payable (operating expenses) 20,180 16,220 Dividends payable 6,980 9,010 Common stock, $10 par 48,670 38,020 Paid-in capital: Excess of issue price over par-common stock 182,960 105,540 Retained earnings 481,300 452,420 Total liabilities and stockholders' equity $901,300 $776,020 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,448,620 Cost of goods sold 596,500 Gross profit $852,120 Operating expenses: Depreciation expense $7,220 Other operating expenses 752,180 Total operating expenses 759,400 $92,720 Operating income Other expense: Loss on sale of investments (24,510) Income before income tax $68,210 Income tax expense 21,830 Net income 46,380 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 $66,280 cash. d. The common stock was issued for cash. e. There was a $17,500 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. 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 investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
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