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

1		Dec. 31, 20Y6	Dec. 31, 20Y5
2	Assets
3	Cash	$643,320.00	$679,710.00
4	Accounts receivable (net)	567,060.00	547,290.00
5	Inventories	1,010,150.00	983,330.00
6	Investments	0.00	240,620.00
7	Land	520,090.00	0.00
8	Equipment	879,420.00	680,200.00
9	Accumulated depreciation-equipment	(244,310.00)	(200,240.00)
10	Total assets	$3,375,730.00	$2,930,910.00
11	Liabilities and Stockholders Equity
12	Accounts payable	$772,600.00	$747,990.00
13	Accrued expenses payable	63,150.00	70,180.00
14	Dividends payable	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 parcommon 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		$5,978,640.00
2	Cost of merchandise sold		2,452,460.00
3	Gross profit		$3,526,180.00
4	Operating expenses:
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		(65,430.00)
11	Income before income tax		$317,620.00
12	Income tax expense		103,420.00
13	Net income		$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
D.	The common stock was issued for cash.
E.	There was a $28,580 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 a minus sign to indicate a decrease in cash.

Labels and Amount DescriptionsCash used for dividendsCash used for purchase of equipmentCash used for purchase of landCash paid for purchase of treasury stockCash payments for income taxesCash payments for merchandiseCash payments for operating expensesCash received from customersCash from sale of common stockCash from sale of investmentsDecember 31, 20Y6Decrease in cashDepreciationFor the Year Ended December 31, 20Y6Gain on sale of investmentsIncrease in cashIssuance of common stock for acquisition of landIssuance of common stock for purchase of equipmentLoss on sale of investmentsNet cash flow from financing activitiesNet cash flow from investing activitiesNet cash flow from operating activitiesNet cash flow used for financing activitiesNet cash flow used for investing activitiesNet cash flow used for operating activities

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 a minus sign to indicate a decrease in cash.

Canace Products Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3
4
5
6
7
8	Cash flows from (used for) investing activities:
9
10
11
12
13
14	Cash flows from (used for) financing activities:
15
16
17
18
19	Cash at the beginning of the year
20	Cash at the end of the year