Statement of Cash Flows-Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is as follows: Dec. 31, 20Y6 Dec. 31, 2015 Assets Cash Accounts receivable (net) $277,920 100,680 284,210 Inventories $258,230 92,750 274,600 106,380 Investments Land Equipment Accumulated depreciation equipment 145,780 313,580 (73,410) $1,048,760 242,780 (65,470) $909,270 Total assets $189,830 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable $179,130 18,880 Common stock, $10 par 10,490 56,630 212,900 560,030 23,640 8,180 44,550 123,660 530,110 Paid-in capital: Excess of issue price over par.common stock Retained earnings Check My Work Previous eBook Show Me How Calculator Total liabilities and stockholders' equity $1,048,750 $909,270 The income statement for the year ended December 31, 2016, is as follows: Sales Cost of merchandise sold Gross profit Operating expenses Depreciation expense $1,607,170 661,800 $945,370 $7,940 834,560 842.500 $102,870 Other operating expenses Total operating expenses Operating Income Other expense: Loss on sale of investments Income before income tax Income tax expense Net Income (28 920) $74,150 23.730 $50,420 Additional data obtained from an examination of the accounts in the ledger for 2015 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 $77,660 cash d. The common stock was issued for cash. e. There was a $20.500 debit to Retained Earnings for cash dividends declared. Previous Check My Work Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Cash received from customers Cash payments for merchandise Cash payments for operating expenses Cash payments for income taxes Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities Previous Check My Work Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year Foodtuck 7 Chock My Work Under the direct method, the cash received from operating activities less the cash payments for operating activities is the net cash flow from operating activities Cash flows from used for) investing activities show the cash inflows and outflows related to changes in a company's long-term assets. Cash fows from (used for) financing activities show the cash inflows and outflows related to changes in a company's long-term liabilities and stockholders' equity Consider what account(s) would have an impact on determining how much cash is received during the period. Which account(s) would have an impact on determining how much was paid out in cash during the period? Were there any purchases or sales of noncurrent assets during the year? Did the company engage in any activities that affected the equity or debt in their company