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	$643,400.00	$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	$771,800.00	$748,400.00
13	Accrued expenses payable	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, 20Y6, 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 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. Use a minus sign to indicate a decrease in cash.

Labels and Amount Descriptions

Labels and Amount Descriptions
Cash used for dividends
Cash used for purchase of equipment
Cash used 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 from sale of common stock
Cash from sale of investments
December 31, 20Y6
Decrease in cash
Depreciation expense
For the Year Ended December 31, 20Y6
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

Statement of Cash Flows

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