The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is shown as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2 Assets 3 Cash $643,400.00 $679,400.00 4 Accounts receivable (net) 566,800.00 547,400.00 5 Inventories 1,011,000.00 982,800.00 6 Investments 0.00 240,000.00 7 Land 520,000.00 0.00 8 Equipment 880,000.00 680,000.00 9 Accumulated depreciation-equipment (244,400.00) (200,400.00) 10 Total assets $3,376,800.00 $2,929,200.00 11 Liabilities and Stockholders Equity 12 Accounts payable (merchandise creditors) $771,800.00 $748,400.00 13 Accrued expenses payable (operating expenses) 63,400.00 70,800.00 14 Dividends payable 8,800.00 6,400.00 15 Common stock, $2 par 56,000.00 32,000.00 16 Paid-in capital: Excess of issue price over parcommon stock 408,000.00 192,000.00 17 Retained earnings 2,068,800.00 1,879,600.00 18 Total liabilities and stockholders equity $3,376,800.00 $2,929,200.00 The income statement for the year ended December 31, 2016, is as follows: 1 Sales $5,980,000.00 2 Cost of merchandise sold 2,452,000.00 3 Gross profit $3,528,000.00 4 Operating expenses: 5 Depreciation expense $44,000.00 6 Other operating expenses 3,100,000.00 7 Total operating expenses 3,144,000.00 8 Operating income $384,000.00 9 Other expense: 10 Loss on sale of investments (64,000.00) 11 Income before income tax $320,000.00 12 Income tax expense 102,800.00 13 Net income $217,200.00 Additional data obtained from an examination of the accounts in the ledger for 2016 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. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign only to indicate the net cash outflows for each section. Deduct, Less or colons (:) will automatically appear if required.

The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is shown as follows:

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1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$643,400.00	$679,400.00
4	Accounts receivable (net)	566,800.00	547,400.00
5	Inventories	1,011,000.00	982,800.00
6	Investments	0.00	240,000.00
7	Land	520,000.00	0.00
8	Equipment	880,000.00	680,000.00
9	Accumulated depreciation-equipment	(244,400.00)	(200,400.00)
10	Total assets	$3,376,800.00	$2,929,200.00
11	Liabilities and Stockholders Equity
12	Accounts payable (merchandise creditors)	$771,800.00	$748,400.00
13	Accrued expenses payable (operating expenses)	63,400.00	70,800.00
14	Dividends payable	8,800.00	6,400.00
15	Common stock, $2 par	56,000.00	32,000.00
16	Paid-in capital: Excess of issue price over parcommon stock	408,000.00	192,000.00
17	Retained earnings	2,068,800.00	1,879,600.00
18	Total liabilities and stockholders equity	$3,376,800.00	$2,929,200.00

The income statement for the year ended December 31, 2016, is as follows:

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1	Sales		$5,980,000.00
2	Cost of merchandise sold		2,452,000.00
3	Gross profit		$3,528,000.00
4	Operating expenses:
5	Depreciation expense	$44,000.00
6	Other operating expenses	3,100,000.00
7	Total operating expenses		3,144,000.00
8	Operating income		$384,000.00
9	Other expense:
10	Loss on sale of investments		(64,000.00)
11	Income before income tax		$320,000.00
12	Income tax expense		102,800.00
13	Net income		$217,200.00

Additional data obtained from an examination of the accounts in the ledger for 2016 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.

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

The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.

. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign only to indicate the net cash outflows for each section. Deduct, Less or colons (:) will automatically appear if required.

Labels In CengageNOW, a Label is a text entry that does not have an amount associated with it. and Amount Descriptions In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.
Cash paid for dividends
Cash paid for purchase of equipment
Cash paid for purchase of land
Cash paid for purchase of treasury stock
Cash payments for income taxes
Cash payments for merchandise
Cash payments for operating expenses
Cash received from customers
Cash received from sale of common stock
Cash received from sale of investments
December 31, 2016
Decrease in cash
Depreciation
For the Year Ended December 31, 2016
Gain on sale of investments
Increase in cash
Issuance of common stock for acquisition of land
Issuance of common stock for purchase of equipment
Loss on sale of investments
Net cash flow from financing activities
Net cash flow from investing activities
Net cash flow from operating activities
Net cash flow used for financing activities
Net cash flow used for investing activities
Net cash flow used for operating activities