Statement of cash flowsdirect 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 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 $176,000 cash.

D. The common stock was issued for cash.

E. There was a $28,000 debit to Retained Earnings for cash dividends declared.

Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows Dec. 31, 20Y6 Dec. 31,20YS Assets 679400 547 400 982,800 240,000 0 680,000 (200,400) 2,929,200 566,800 1,011,000 Inventories 520,000 880,000 (244.400) Liabilities and Stockholders'Equity Accounts payable (merchandise creditors) ".. .. . Accrued expenses payable (operating expenses). .. . $ 771,800 63,400 8,800 56,000 408,000 2,068,800 s 748.400 70,800 6,400 32,000 192,000 1,879,600 $2.929.200 Paid-in capital. Excess of issue price over par-common stock