The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

1		Dec. 31, 20Y6	Dec. 31, 20Y5
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	(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 in excess of 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, 20Y6, is as follows:

1	Sales		$5,980,000.00
2	Cost of goods 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 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.

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.

Statement of Cash Flows

1	Cash flows from (used for) operating activities:
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8	Cash flows from (used for) investing activities:
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14	Cash flows from (used for) financing activities:
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19	Cash balance, January 1, 20Y6
20	Cash balance, December 31, 20Y6