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Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $273,020 $256,310 Accounts receivable (net) 98,900 92,060 Inventories 279,200 272,560 Investments 0 105,590 Land 143,210 0 Equipment 308,050 240,970 Accumulated depreciation-equipment (72,120) (64,980) Total assets $1,030,260 $902,510 Liabilities and Stockholders' Equity Accounts payable $186,480 $177,790 Accrued expenses payable 18,540 23,470 Dividends payable 10,300 8,120 Common stock, $10 par 55,630 44,220 Paid-in capital: Excess of issue price over par-common stock 209,140 122,740 Retained earnings 550,170 526,170 Total liabilities and stockholders equity $1,030,260 $902,510 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,463,260 Cost of merchandise sold 602,500 Gross profit $860,760 Operating expenses: Depreciation expense $7,140 Other operating expenses 759,960 Total operating expenses 767,100 Operating income $93,660 Other expense: Loss on sale of investments (28,510) Income before income tax $65,150 Income tax expense 20,850 Net income $44,300 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $77,080 cash. The common stock was issued for cash. There was a $20,300 debit to Retained Earnings for cash dividends declared. 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, 20Y6 Cash flows from operating activities: Cash received from customers $ 1,456,420 Cash payments for merchandise 593,810 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 Increase in cash $ Cash at the beginning of the year Cash at the end of the year

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