The comparative balance sheet of Canace Products Inc. for December 31, 2046 and 2045, is as follows: 1 Dec. 31, 2046 Dec 31, 2045 Assets N 3 Cash $643,810.00 $679,240.00 4 Accounts receivable (net) 566,800.00 547,320.00 5 Inventories 1,010,630.00 982,470.00 6 Investments 0.00 240,820.00 7 Land 519,380.00 0.00 879,170.00 680,900.00 8 Equipment 9 Accumulated depreciation (201,330.00) (245,160.00) $3,374,630.00 10 Total assets $2,929,420.00 11 $771,990.00 $747,520.00 64,240.00 70,210.00 9,720.00 6,500.00 Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) 14 Dividends payable 15 Common stock, $2 par 16 Paid-in capital: Excess of issue price over par-common stock 17 Retained earnings 18 Total liabilities and stockholders' equity 32,000.00 56,000.00 408,000.00 192,000.00 1,881,190.00 2,064,680.00 $3,374,630.00 $2,929,420.00 The income statement for the year ended December 31, 20Y6, is as follows: 1 Sales $5,974,220.00 2 Cost of goods sold 2,451,990.00 3 Gross profit $3,522,230.00 $43,830.00 3,099,790.00 7 3,143,620.00 4 Operating expenses: 5 Depreciation expense 6 Other operating expenses Total operating expenses 8 Operating income 9 Other expense: 10 Loss on sale of investments 11 Income before income tax $378,610.00 (64,930.00) $313,680.00 102,510.00 12 Income tax expense 13 Net income $211,170.00 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 $175,890 cash d. The common stock was issued for cash. e. There was a $27,680 debit to Retained Eamings 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. Enter amounts that represent cash outflows as negative numbers using a minus sign. Canace Products Inc. Score: 87/131 Statement of Cash Flows For the Year Ended December 31, 2046 1 Cash flows from operating activities: 2 Cash received from customers 3 Cash payments for merchandise 4 Cash payments for operating expenses 5 Cash payments for income taxes 6 Net cash flow from operating activities 7 9 8 Cash flows from investing activities: Cash received from sale of investments 10 Cash paid for purchase of land 11 Cash paid for purchase of equipment 12 Net cash flow used for investing activities 13 14 Cash flows from financing activities: 15 Cash received from sale of common stock 16 Cash paid for dividends 17 Net cash flow from financing activities 18 Change in cash 19 Cash at the beginning of the year 20 Cash at the end of the year
