Statement of Cash FlowsDirect Method applied to PR 16-1A

1. The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows:

   	Dec. 31, 20Y3			Dec. 31, 20Y2
   Assets
   Cash	$ 233,090			$ 220,060
   Accounts receivable (net)	85,530			78,470
   Inventories	241,060			231,790
   Investments	0			90,190
   Land	123,560			0
   Equipment	263,450			207,440
   Accumulated depreciation-equipment	(62,600)			(55,900)
   Total assets	$884,090			$772,050
   Liabilities and Stockholders' Equity
   Accounts payable	$ 159,690			$ 152,090
   Accrued expenses payable	16,060			20,070
   Dividends payable	8,600			6,900
   Common stock, $1 par	47,200			36,290
   Paid-in capital: Excess of issue price over par-common stock	179,600			105,000
   Retained earnings	472,940			451,700
   Total liabilities and stockholders equity	$884,090			$772,050

   The income statement for the year ended December 31, 20Y3, is as follows:

   Sales		$1,474,610
   Cost of merchandise sold		906,890
   Gross profit		$ 567,720
   Operating expenses:
   Depreciation expense	$ 6,700
   Other operating expenses	480,720
   Total operating expenses		487,420
   Operating income		$ 80,300
   Other income:
   Gain on sale of investments		15,100
   Income before income tax		$ 95,400
   Income tax expense		38,160
   Net income		$ 57,240

   Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

   1. The investments were sold for $105,290 cash.
   2. Equipment and land were acquired for cash.
   3. There were no disposals of equipment during the year.
   4. The common stock was issued for cash.
   5. There was a $36,000 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 minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

   Navaria Inc.
   Statement of Cash Flows
   For the Year Ended December 31, 20Y3
   Cash flows from operating activities:
   	$
   Net cash flow from operating activities		$
   Cash flows from (used for) investing activities:
   	$
   Net cash flow used for investing activities
   Cash flows from (used for) financing activities:
   	$
   Net cash flow from financing activities
   		$
   Cash at the beginning of the year
   Cash at the end of the year		$