The comparative balance sheet of Canace Products Inc for Dec

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

The income statement for the year ended December 31, 20Y6, is as follows:

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 $85,250 cash.

The common stock was issued for cash.

There was a $22,500 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 out flows, cash payments, decreases in cash, or any negative adjustments.

	Dec. 31, 20Y6	Dec. 31, 20Y5
Assets
Cash	$302,620		$283,460
Accounts receivable (net)	109,630		101,810
Inventories	309,480		301,410
Investments	0		116,780
Land	158,740		0
Equipment	341,450		266,490
Accumulated depreciation-equipment	(79,940)		(71,860)
	Total assets	$1,141,980		$998,090
Liabilities and Stockholders\' Equity
Accounts payable	$206,700		$196,620
Accrued expenses payable	20,560		25,950
Dividends payable	11,420		8,980
Common stock, $10 par	61,670		48,910
Paid-in capital: Excess of issue price over par-common stock	231,820		135,740
Retained earnings	609,810		581,890
	Total liabilities and stockholders’ equity	$1,141,980		$998,090

Solution

Cash flows statement Cash flows from Operating activities: Cash collected from Accounts receivable (1650980+101810-109630) 1643160 Cash paid for supplier of inventory (679800+309480-301410+196620-206700) -677790 Cash paid for operating expense (857420+25950-20560) -862810 Income taxx paid -23730 Net cash provided from Operating activities 78830 Cash flows from Investing activities: Investment sold 85250 Purchase of land -158740 Purchase of equipment -74960 Net cash paid for investing activities -148450 Cash flows from Financing activities: Dividend paid (22500+8980-11420) -20060 Issue of Common Stock (61670+231820-48910-135740) 108840 Net cash provided from financing activities 88780 Net increase in cash 19160 Beginning Balance in cash 283460 Ending balance n cash 302620