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	$ 204,930			$ 192,710
Accounts receivable (net)	74,890			68,710
Inventories	211,100			202,980
Investments	0			78,980
Land	108,200			0
Equipment	230,700			181,650
Accumulated depreciation-equipment	(54,900)			(49,000)
Total assets	$774,920			$676,030
Liabilities and Stockholders' Equity
Accounts payable	$ 139,840			$ 133,180
Accrued expenses payable	14,060			17,580
Dividends payable	7,600			6,100
Common stock, $1 par	41,300			31,770
Paid-in capital: Excess of issue price over par-common stock	157,200			91,940
Retained earnings	414,920			395,460
Total liabilities and stockholders equity	$774,920			$676,030

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

Sales		$1,330,020
Cost of merchandise sold		817,960
Gross profit		$ 512,060
Operating expenses:
Depreciation expense	$ 5,900
Other operating expenses	433,590
Total operating expenses		439,490
Operating income		$ 72,570
Other income:
Gain on sale of investments		13,200
Income before income tax		$ 85,770
Income tax expense		34,310
Net income		$ 51,460

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

1. The investments were sold for $92,180 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 $32,000 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 $