The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: 1 2 Dec. 31, 20Y6 Dec. 31, 2015 Assets 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Investments 7 Land Equipment 9 Accumulated depreciation 10 Total assets $643,320.00 $679,710.00 567,060.00 547,290.00 1,010,150.00 983,330.00 0.00 240,620.00 520,090.00 0.00 879,420.00 680,200.00 (244,310.00) (200,240.00) $3,375,730.00 $2,930,910.00 11 Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) $772,600.00 $747.990.00 13 Accrued expenses payable (operating expenses) 14 Dividends payable 63,150.00 70,180.00 8,990.00 7,370.00 15 Common stock, $2 par 56,000.00 32,000.00 16 Paid-in capital: Excess of issue price over par-common stock 408,000.00 192,000.00 17 Retained earnings 2,066,990.00 1,881,370.00 18 Total liabilities and stockholders' equity $3,375,730.00 $2,930,910.00 The income statement for the year ended December 31, 20Y6, is as follows: 1 Sales 2 Cost of goods sold 3 Gross profit 4 Operating expenses: $5,978,640.00 2,452,460.00 $3,526,180.00 5 Depreciation expense $44,070.00 6 Other operating expenses 3,099,060.00 7 Total operating expenses 3,143,130.00 8 Operating income $383,050.00 9 Other expense: 10 Loss on sale of investments 11 Income before income tax 12 Income tax expense 13 Net income (65,430.00) $317,620.00 103,420.00 $214,200.00 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 $175,190 cash 15 Income before income tax Income tax expense 13 Net Income $317,620.00 103,420.00 $214,200.00 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 $175,190 cash d. The common stock was issued for cash There was a $28,500 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 Labels and Amount Descriptions 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 Change in cash December 31, 20Y6 Depreciation For the Year Ended December 31, 20Y6 Change in cash December 31, 20Y6 Depreciation For the Year Ended December 31, 20Y6 Gain on sale of investments 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 1 Cash flows from operating activities: 2 3 4 S Canace Products Inc. Statement of Cash Flows (Label) 7 8 Cash flows from investing activities: 9 10 11 12 13 14 Cash flows from financing activities: 15 16 17 18 19 Cash at the beginning of the year 20 Cash at the end of the year