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	$ 195,590			$ 183,630
Accounts receivable (net)	71,370			65,480
Inventories	201,160			193,420
Investments	0			75,260
Land	103,110			0
Equipment	219,840			173,100
Accumulated depreciation-equipment	(52,300)			(46,700)
Total assets	$738,770			$644,190
Liabilities and Stockholders' Equity
Accounts payable	$ 133,260			$ 126,910
Accrued expenses payable	13,400			16,750
Dividends payable	7,300			5,800
Common stock, $1 par	39,400			30,280
Paid-in capital: Excess of issue price over par-common stock	149,800			87,610
Retained earnings	395,610			376,840
Total liabilities and stockholders equity	$738,770			$644,190

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

Sales		$1,259,100
Cost of merchandise sold		774,350
Gross profit		$ 484,750
Operating expenses:
Depreciation expense	$ 5,600
Other operating expenses	410,470
Total operating expenses		416,070
Operating income		$ 68,680
Other income:
Gain on sale of investments		12,600
Income before income tax		$ 81,280
Income tax expense		32,510
Net income		$ 48,770

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

1. The investments were sold for $87,860 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 $30,000 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:
Cash received from customers	$
Cash payments for merchandise
Cash payments for operating expenses
Cash payments for income taxes
Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
Cash from sale of investments	$
Cash used for purchase of land
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock	$
Cash used for dividends
Net cash flow from financing activities
Increase in cash		$
Cash at the beginning of the year
Cash at the end of the year		$