Statement of Cash Flows-Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2085, is as follows: Dec. 31, 20Y6 Dec. 31, 2045 Assets Cash $253,480 $238,240 Accounts receivable (net) 91,830 85,560 Inventories 259,210 253,340 Investments 0 98,150 Land 132,960 0 Equipment 286,000 223,980 Accumulated depreciation-equipment (66,960) (60,400) Total assets $956,520 $838,870 $165,260 21,810 7,550 41,100 114,090 489,060 $838,870 Liabilities and Stockholders' Equity Accounts payable $173,130 Accrued expenses payable 17,220 Dividends payable 9,570 Common stock, $10 par 51,650 Paid-in capital: Excess of issue price over par-common stock 194,170 Retained earnings 510,780 Total liabilities and stockholders' equity $956,520 The income statement for the year ended December 31, 2016, is as follows: $1,347,340 Cost of merchandise sold 554,800 Gross profit $792,540 Operating expenses: Depreciation expense $6,560 Other operating expenses 699,740 Total operating expenses 706,300 Operating income $86,240 Other expense: Sales Loss on sale of investments (26,500) Income before income tax $59,740 Income tax expense 19,120 Net income $40,620 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. C. The investments were sold for $71,650 cash. d. The common stock was issued for cash. e. There was a $18,900 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. Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 2016 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 received from gain on 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 Decrease in cash Cash at the beginning of the year Cash at the end of the year