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Statement of Cash Flows Direct Method The comparative balance sheet of Canace Products Inc. for December 3 1 , 2 0 Y 6 and 2
Statement of Cash FlowsDirect Method The comparative balance sheet of Canace Products Inc. for December Y and Y is as follows: Dec. Y Dec. Y Assets Cash $ $ Accounts receivable net Inventories Investments Land Equipment Accumulated depreciationequipment Total assets $ $ Liabilities and Stockholders' Equity Accounts payable $ $ Accrued expenses payable Dividends payable Common stock, $ par Excess of paidin capital over par Retained earnings Total liabilities and stockholders equity $ $ The income statement for the year ended December Y is as follows: Sales $ Cost of merchandise sold Gross profit $ Operating expenses: Depreciation $ Other operating expenses Total operating expenses 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 Y are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $ cash. The common stock was issued for cash. There was a $ debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct met
Statement of Cash FlowsDirect Method The comparative balance sheet of Canace Products Inc. for December Y and Y is as follows: Dec. Y Dec. Y Assets Cash $ $ Accounts receivable net Inventories Investments Land Equipment Accumulated depreciationequipment Total assets $ $ Liabilities and Stockholders' Equity Accounts payable $ $ Accrued expenses payable Dividends payable Common stock, $ par Excess of paidin capital over par Retained earnings Total liabilities and stockholders equity $ $ The income statement for the year ended December Y is as follows: Sales $ Cost of merchandise sold Gross profit $ Operating expenses: Depreciation $ Other operating expenses Total operating expenses 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 Y are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $ cash. The common stock was issued for cash. There was a $ debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct met
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