The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is as follows:

The income statement for the year ended December 31, 2016, is 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.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from
operating activities.

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Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) Inventories 643,400 566,800 1,011,000 679,400 547,400 982,800 240,000 520,000 880,000 (244,400) $3,376,800 680,000 (200,400) Total assets Liabilities and Stockholders'Equity Dividends payable... Common stock, $2 par Paid-in capital: Excess of issue price over par-common stock Retained earnings 63,400 8,800 56,000 408,000 2,068,800 748,400 70,800 6,400 32,000 192,000 1,879,600 2,929,200 $5,980,000 2,452,000 3,528,000 Operatingexpenses: 44,000 3,100,000 Depreciation expense Total operating expenses 3,144,000 384,000 Other expense: Loss on sale of investments 64,000) 320,000 102,800 217,200 Net income..