15. Statement of Cash FlowsDirect Method

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		$285,700		$266,070
Accounts receivable (net)		103,500		95,560
Inventories		292,160		282,940
Investments		0		109,610
Land		149,860		0
Equipment		322,350		250,140
Accumulated depreciation-equipment		(75,470)		(67,450)
	Total assets	$1,078,100		$936,870
Liabilities and Stockholders' Equity
Accounts payable		$195,140		$184,560
Accrued expenses payable		19,410		24,360
Dividends payable		10,780		8,430
Common stock, $10 par		58,220		45,910
Paid-in capital: Excess of issue price over par-common stock		218,850		127,410
Retained earnings		575,700		546,200
	Total liabilities and stockholders equity	$1,078,100		$936,870

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

Sales					$1,624,900
Cost of merchandise sold					669,100
Gross profit					$955,800
Operating expenses:
	Depreciation expense		$8,020
	Other operating expenses		843,780
		Total operating expenses			851,800
Operating income					$104,000
Other expense:
		Loss on sale of investments			(29,590)
Income before income tax					$74,410
Income tax expense					23,810
Net income					$50,600

Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $80,020 cash.
4. The common stock was issued for cash.
5. There was a $21,100 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.

Canace Products Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y6
Cash flows from operating activities:
Cash received from customers	$
Cash payments for merchandise
Cash payments for operating expenses
Cash payments for income taxes
Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
Cash from sale of investments	$
Cash used for purchase of land
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock	$
Cash used for dividends
Net cash flow from financing activities
Increase in cash		$
Cash at the beginning of the year
Cash at the end of the year		$