Statement of Cash Flows-Direct Method The comparative balance sheet of Canace Products Inc. for December 31,20Y6 and 20Y5, is as follows: The income statement for the year ended December 31,20Y6, is as follows: Additional data obtained from an examination of the accounts in the ledoer for 206 are as follows: a. Equipment and land were acquired for cash. b. There were no disposats of equipment during the year. c. The investments were sold for $85,400cash. d. The common stock was issued for cash. e. There was a $22,500 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 outflows, cash payments, decreases in cash, or any negative adjustments. Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from gain on sale of investments X Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends v Net cash flow from financing activities Decrease in cash x Cash at the beginning of the year Cash at the end of the year Feedback