The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows:

1		Dec. 31, 20Y3	Dec. 31, 20Y2
2	Assets
3	Cash	$625,650.00	$586,340.00
4	Accounts receivable (net)	228,170.00	208,030.00
5	Inventories	641,480.00	617,130.00
6	Investments	0.00	240,290.00
7	Land	328,170.00	0.00
8	Equipment	706,070.00	552,300.00
9	Accumulated depreciation-equipment	(165,580.00)	(147,010.00)
10	Total assets	$2,363,960.00	$2,057,080.00
11	Liabilities and Stockholders Equity
12	Accounts payable	$424,300.00	$404,860.00
13	Accrued expenses payable	41,850.00	52,880.00
14	Dividends payable	23,200.00	19,880.00
15	Common stock, $4 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	1,307,110.00	1,199,460.00
18	Total liabilities and stockholders equity	$2,363,960.00	$2,057,080.00

The income statement for the year ended December 31, 20Y3, is as follows:

1	Sales		$5,378,129.00
2	Cost of merchandise sold		3,306,510.00
3	Gross profit		$2,071,619.00
4	Operating expenses:
5	Depreciation expense	$18,570.00
6	Other operating expenses	1,755,879.00
7	Total operating expenses		1,774,449.00
8	Operating income		$297,170.00
9	Other income:
10	Gain on sale of investments		40,390.00
11	Income before income tax		$337,560.00
12	Income tax expense		133,650.00
13	Net income		$203,910.00

Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

A.	The investments were sold for $280,680 cash.
B.	Equipment and 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 $96,260 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 to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

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 to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Navaria Inc.

Statement of Cash Flows

1	Cash flows from 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 at the beginning of the year
20	Cash at the end of the year