presening cash flows from from The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and vities, as follows: ,600 Appendix 2 PR 13-4A Statement of cash flows-direct method 20Y5, is Dec. 31, 20Y6 Dec. 31, 20YS ash PLATE S 643,400 566,800 1,011,000 679,400 Inventories . Investments 547,400 982,800 240,000 0 680,000 (200,400) $2,929,200 EDGER 520,000 880,000 (244,400) $3,376,800 771,800 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) . . 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 Paid-in capital: Excess of issue price over par-common stock..... The income statement for the year ended December 31, 20Y6, is as follows Sales Cost of goods sold. Gross profit Operating expenses $5,980,000 2,452,000 $3,528,000 3,100,000 3,144,000 384,000 Operating income Other expense: 64,000) 320,000 102,800 $ 217,200 Income before income tax . .. .. Income tax expense Net income 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. Continued)