Statement of Cash FlowsDirect Method

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

		Dec. 31, 20Y6		Dec. 31, 20Y5
Assets
Cash		$302,540		$279,810
Accounts receivable (net)		109,600		100,490
Inventories		309,390		297,550
Investments		0		115,270
Land		158,690		0
Equipment		341,350		263,060
Accumulated depreciation-equipment		(79,920)		(70,940)
	Total assets	$1,141,650		$985,240
Liabilities and Stockholders' Equity
Accounts payable		$206,640		$194,090
Accrued expenses payable		20,550		25,620
Dividends payable		11,420		8,870
Common stock, $10 par		61,650		48,280
Paid-in capital: Excess of issue price over par-common stock		231,750		133,990
Retained earnings		609,640		574,390
	Total liabilities and stockholders equity	$1,141,650		$985,240

The income statement for the year ended December 31, 20Y6, is as follows:

Sales					$1,806,110
Cost of merchandise sold					743,700
Gross profit					$1,062,410
Operating expenses:
	Depreciation expense		$8,980
	Other operating expenses		937,820
		Total operating expenses			946,800
Operating income					$115,610
Other expense:
		Loss on sale of investments			(31,120)
Income before income tax					$84,490
Income tax expense					27,040
Net income					57,450

Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $84,150 cash.

The common stock was issued for cash.

There was a $22,200 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 out flows, cash or any payments, decreases in cash or any negative adjustments.

Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 20Y6 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