accounting

Statement of Cash Flows Direct Method The comparative balance sheet of Canace Products Inc for December 31, 2016 and 2075, is as follows: Dec 31, 2016 Dec 31, 2015 Assets Cash Accounts receivable (net) Inventories Investments $280,310 101.550 286,650 $264,060 94,840 280,790 108,780 0 147,030 248,250 Land Equipment Accumulated depreciation 316,270 (74,040) $1,057,770 (66.940) $929,780 Total assets $183,170 $191,460 24,170 19,040 8,370 45,560 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock 20,580 57,120 214,230 126,450 $183,170 24,170 8,370 45,560 126,450 542,060 $929,780 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $191,460 Accrued expenses payable (operating expenses) 19,040 Dividends payable 10,580 Common stock, $10 par 57,120 Paid-in capital: Excess of issue price over par common stock 214,730 Retained earnings 564,840 Total liabilities and stockholders' equity $1,057,770 The Income statement for the year ended December 31, 2076, is as follows: Sales $1,462,510 602,200 Cost of goods sold $860,310 Gross profit Operating expenses: Depreciation expense $7,100 Other operating expenses 759,600 766,700 Total operating expenses $93,610 Operating income www TULOT er en Operating income $93,610 other expense: Loss on sale of investments (29,370) Income before income tax $64,240 Income tax expense 20,560 Net Income 43,680 Additional data obtained from an examination of the accounts in the leder 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 $79,410 cash. d. The common stock was issued for cash. e. There was a $20.900 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 mission 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, 2016 Cash flows from operating activities