PR 16-4A Statement of cash flows-direct method OBJ. 3 is as follows: The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 2015, Dec. 31, 2016 Dec. 31, 2045 Assets Cash Accounts receivable (net) Inventories Investments Land Equipment. Accumulated depreciation. Total assets. Liabilities and Stockholders' Equity Accounts payable ... Accrued expenses payable Dividends payable... Common stock, $2 par.. Paid-in capital: Excess of issue price over par-common stock Retained earnings.. Total liabilities and stockholders' equity. $ 643,400 566,800 1,011,000 0 520,000 880,000 (244,400) $3,376,800 $ 679,400 547,400 982,800 240,000 0 680,000 (200,400) $2.929,200 $ 771,800 63,400 8,800 56,000 408,000 2,068,800 $3,376,800 $ 748,400 70,800 6,400 32,000 192,000 1,879,600 $2,929,200 ... The income statement for the year ended December 31, 2016, is as follows: Sales $5,980,000 Cost of merchandise sold 2,452,000 Gross profit... $3,528,000 Operating expenses: Depreciation expense $ 44,000 Other operating expenses 3,100,000 Total operating expenses 3,144,000 (Continued) Statement of Cash Flows $ 384,000 (64,000) $ 320,000 102,800 $ 217,200 Operating income.. Other expense: Loss on sale of investments. Income before income tax Income tax expense Net income Additional data obtained from an examination of the accounts in the ledger for 2046 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. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities