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

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

	Dec. 31, 20Y3			Dec. 31, 20Y2
Assets
Cash	$ 232,320			$ 219,720
Accounts receivable (net)	85,390			78,340
Inventories	240,690			231,430
Investments	0			90,050
Land	123,370			0
Equipment	263,030			207,110
Accumulated depreciation-equipment	(62,500)			(55,800)
Total assets	$882,300			$770,850
Liabilities and Stockholders' Equity
Accounts payable	$ 159,450			$ 151,860
Accrued expenses payable	16,030			20,040
Dividends payable	8,600			6,900
Common stock, $1 par	47,100			36,230
Paid-in capital: Excess of issue price over par-common stock	179,300			104,840
Retained earnings	471,820			450,980
Total liabilities and stockholders equity	$882,300			$770,850

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

Sales		$1,465,110
Cost of merchandise sold		901,040
Gross profit		$ 564,070
Operating expenses:
Depreciation expense	$ 6,700
Other operating expenses	477,630
Total operating expenses		484,330
Operating income		$ 79,740
Other income:
Gain on sale of investments		15,000
Income before income tax		$ 94,740
Income tax expense		37,900
Net income		$ 56,840

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

1. The investments were sold for $105,050 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.