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Statement of cash flows-direct method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 2045, is as follows: Dec 31, 2015 Dec 31, 2016 1 Assets 1 Cash 5642,720.00 5679,910.00 Accounts receivable (net) 567220.00 547.910.00 5 Inventories 1,010,310.00 982,000.00 Investments 0.00 240,170.00 7 Land 519,640.00 0.00 879,880.00 Equipment Accumulated depreciation (243,670.00) 53,376,100.00 679,710.00 (201,010.00) $2,928,770.00 10 Total assets 11 Liabilities and Stockholders' Equity 12 Accounts payable (merchandise creditors) 13 Accrued expenses payable (operating expenses) $772.410.00 $749,340.00 64,500.00 70,620.00 Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions 8,580.00 7,170.00 32,000.00 56,000.00 1 Dividends payable is common stock, Spar Paid in capital Excess of issue price over par-common stock 1) Retained earnings Total abilities and stockholders' equity 408,000.00 192,000.00 2,066 81000 1,877,640.00 53,376,100.00 $2,928.770.00 The income statement for the year anded December 31, 2016, is as follows: 1 Sales $5.978.490.00 2,451,600.00 55,526,890.00 Cost of goods sold Gross profit + Operating expenses Depreciation expense Other operating expenses 542,660.00 3,100,820.00 Statement of cash flows-direct method Instructions Labels and Amount Descriptions Statement of Cash Flows 3,143,480.00 $383.410.00 Instructions Total operating expenses Operating income Other expense 10 Loss on sale of investments Income before income tax Income tax expense Net income (64,020.00) $319,390.00 103 18000 $215,210.00 Additional data obtained from an examination of the accounts in the ledger for 2076 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 $176,160 cash d. The common stock was issued for cash. e. There was a $27,040 debit to retained Earnings for cash dividende declared Statement of cash flows-direct method Instructions Labels and Amount Descriptions Statement of Cash Flows Labels and Amount Descriptions