The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2 Assets 3 Cash $626,640.00 $585,760.00 4 Accounts receivable (net) 226,900.00 208,390.00 5 Inventories 641,350.00 616,130.00 6 Investments 0.00 239,300.00 7 Land 328,730.00 0.00 8 Equipment 705,940.00 553,530.00 9 Accumulated depreciation-equipment (166,970.00) (148,000.00) 10 Total assets $2,362,590.00 $2,055,110.00 11 Liabilities and Stockholders Equity 12 Accounts payable (merchandise creditors) $425,140.00 $404,540.00 13 Accrued expenses payable (operating expenses) 42,020.00 52,750.00 14 Dividends payable 23,580.00 19,500.00 15 Common stock, $2 par 150,000.00 100,000.00 16 Paid-in capital: Excess of issue price over parcommon stock 417,500.00 280,000.00 17 Retained earnings 1,304,350.00 1,198,320.00 18 Total liabilities and stockholders equity $2,362,590.00 $2,055,110.00 The income statement for the year ended December 31, 2016, is as follows: 1 Sales $5,375,435.00 2 Cost of merchandise sold 3,306,880.00 3 Gross profit $2,068,555.00 4 Operating expenses: 5 Depreciation expense $18,970.00 6 Other operating expenses 1,755,677.00 7 Total operating expenses 1,774,647.00 8 Operating income $293,908.00 9 Other income: 10 Gain on sale of investments 40,580.00 11 Income before income tax $334,488.00 12 Income tax expense 132,778.00 13 Net income $201,710.00 Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: A. The investments were sold for $279,880 cash. B. Equipment and purchase of land were acquired for cash. C. There were no disposals of equipment during the year. D. The common stock was issued for cash. E. There was a $95,680 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 the minus sign only to indicate the net cash outflows for each section. Deduct, Less or colons (:) will automatically appear if required.

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
December 31, 2016
Decrease in cash
Depreciation
For the Year Ended December 31, 2016
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

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 the minus sign only to indicate the net cash outflows for each section. Deduct, Less or colons (:) will automatically appear if required.

Cromme Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
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8	Cash flows from investing activities:
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14	Cash flows from financing activities:
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19	Cash at the beginning of the year
20	Cash at the end of the year