Question

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

		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

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

Sales					$1,650,980
Cost of merchandise sold					679,800
Gross profit					$971,180
Operating expenses:
	Depreciation expense		$8,080
	Other operating expenses		857,420
		Total operating expenses			865,500
Operating income					$105,680
Other expense:
		Loss on sale of investments			(31,530)
Income before income tax					$74,150
Income tax expense					23,730
Net income					50,420

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.

Canace Products Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y6
Cash flows from operating activities:
	$
Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
	$
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
	$
Net cash flow from financing activities
		$
Cash at the beginning of the year
Cash at the end of the year		$

Answer 1

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