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		$237,320		$220,260
Accounts receivable (net)		85,970		79,110
Inventories		242,710		234,210
Investments		0		90,740
Land		124,480		0
Equipment		267,770		207,070
Accumulated depreciation		(62,690)		(55,840)
	Total assets	$895,560		$775,550
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$162,100		$152,780
Accrued expenses payable (operating expenses)		16,120		20,160
Dividends payable		8,960		6,980
Common stock, $10 par		48,360		38,000
Paid-in capital: Excess of issue price over par-common stock		181,800		105,470
Retained earnings		478,220		452,160
	Total liabilities and stockholders equity	$895,560		$775,550

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

Sales					$1,383,560
Cost of goods sold					569,700
Gross profit					$813,860
Operating expenses:
	Depreciation expense		$6,850
	Other operating expenses		718,450
		Total operating expenses			725,300
Operating income					$88,560
Other expense:
		Loss on sale of investments			(24,500)
Income before income tax					$64,060
Income tax expense					20,500
Net income					43,560

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 $66,240 cash.

The common stock was issued for cash.

There was a $17,500 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 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:
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 investing activities:
Cash received from sale of investments	$
Cash paid for purchase of land
Cash paid for purchase of equipment
Net cash flow used for investing activities
Cash flows from financing activities:
Cash received from sale of common stock	$
Cash paid for dividends
Net cash flow from financing activities
Change in cash		$
Cash at the beginning of the year
Cash at the end of the year