statement of cash flows- Direct method

1 Sales 2 Cost of goods sold s Grass proft Operating expenses: s Depreciation expense 6 Other operating expenses 7Total operating expenses Operating income 9 Other expense: 10 Loss on sale of investments 11 Income before income tax 12 Income tax expense 13 Net income $5,985,75000 2,452,320.00 $3,533,430.00 44,170.00 3,100,990.00 3,145,160.00 $388,270.00 (63,610.00) $324,660.00 103,090.00 $221,570.00 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as folows a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year c. The investments were sold for $176,680 cash d. The common stock was issued for cash e. There was a $28,260 debit to Retained Earnings for cash dividends declared Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities, Be sure to statement Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for tex cash outflows as negative numbers using a minus sign Labels and Amount Descriptions Cauh paid of equipmen Cash paid Cash paid purchase of treasuty shoc payments for income ta Cash received received from Change in cash December 31,20Ys Depreciation For the Year Ended December 31, 20Ys Gain on sale of investments lssuance of common stock for aoquisition of land Iasuanoe of common stock for purchase of equipment Loss on sale of investments Net cash flow tom financing advte. Net cash flow from investing activities Net cash flow from operating actvities Net cash flow used for inancing activities Netl oash flow used for investing activites Net cash flow used for operating actvties 939 Statement of Cash Flows statement Refer to the Labels and Amount Deacriptions list provided for the exact wording af the anower cholces for cash outtows as segatve numbers using a minus sign Canace Products Inc. Statement of Cash Flows (Label) Cash flows from operating activities: cySt 2456110 310 020 ope "posh p Income Cash flows from investing activities Statement of cash flows-direct methosd e comparative balance sheet of Canace Products Inc. for December 31,20Y6 and 20Y5, is as follows Dec. 31, 20Y5 Dec. 31, 20Y6 Assets 3 Cash $679,820.00 546,470.00 982,810.00 40,290.00 0.00 679,180.00 $643,290.00 567,130.00 1,010,720.00 0.00 520,170.00 880,950.00 (243,580.00 Accounts receivable (net) 5 Inventories 6 Investments 7 Land 8 Equipment 9 Accumulated depreciation 0 Total assets 3,378,680.00 $2,929,160.00 Liabilities and Stockholders' Equity 771,620.00 $748,300.00 71,040.00 2Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) 63,010.00 ,000.00 56,000.00 408,000.00 7080.00 Dividends payable 15 Common stock, $2 par 16 Paid-in capital: Excess of issue price over par-common stock 17Retained earnings 8 Total liabilities and stockholders' equity 2,000.00 192,000.00 2,072,050.00 1878,740.00 3,378,680.00 $2,929,160.00 The income statement for the year ended December 31, 20Y6, is as follows: 10 12 13 14 Cash flows from financing activities: 15 16 17 18 Cash at the beginning of the year Cash at the end of the year 19 20