In: Accounting
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is shown as follows:
1 |
Dec. 31, 20Y6 |
Dec. 31, 20Y5 |
|
2 |
Assets |
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3 |
Cash |
$643,460.00 |
$679,530.00 |
4 |
Accounts receivable (net) |
566,490.00 |
548,320.00 |
5 |
Inventories |
1,010,720.00 |
982,600.00 |
6 |
Investments |
0.00 |
240,910.00 |
7 |
Land |
519,510.00 |
0.00 |
8 |
Equipment |
879,710.00 |
680,990.00 |
9 |
Accumulated depreciation-equipment |
(243,750.00) |
(200,970.00) |
10 |
Total assets |
$3,376,140.00 |
$2,931,380.00 |
11 |
Liabilities and Stockholders’ Equity |
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12 |
Accounts payable |
$772,290.00 |
$748,770.00 |
13 |
Accrued expenses payable |
63,970.00 |
69,800.00 |
14 |
Dividends payable |
8,000.00 |
7,040.00 |
15 |
Common stock, $2 par |
56,000.00 |
32,000.00 |
16 |
Paid-in capital: Excess of issue price over par—common stock |
408,000.00 |
192,000.00 |
17 |
Retained earnings |
2,067,880.00 |
1,881,770.00 |
18 |
Total liabilities and stockholders’ equity |
$3,376,140.00 |
$2,931,380.00 |
The income statement for the year ended December 31, 20Y6, is as follows:
1 |
Sales |
$5,974,620.00 |
|
2 |
Cost of merchandise sold |
2,451,470.00 |
|
3 |
Gross profit |
$3,523,150.00 |
|
4 |
Operating expenses: |
||
5 |
Depreciation expense |
$42,780.00 |
|
6 |
Other operating expenses |
3,099,440.00 |
|
7 |
Total operating expenses |
3,142,220.00 |
|
8 |
Operating income |
$380,930.00 |
|
9 |
Other expense: |
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10 |
Loss on sale of investments |
(64,890.00) |
|
11 |
Income before income tax |
$316,040.00 |
|
12 |
Income tax expense |
102,160.00 |
|
13 |
Net income |
$213,880.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y6 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 $176,020 cash |
D. | The common stock was issued for cash. |
E. | There was a $27,770 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use a minus sign to indicate a decrease in cash.
Labels and Amount Descriptions |
|
Cash used for dividends | |
Cash used for purchase of equipment | |
Cash used for purchase of land | |
Cash paid for purchase of treasury stock | |
Cash payments for income taxes | |
Cash payments for merchandise | |
Cash payments for operating expenses | |
Cash received from customers | |
Cash from sale of common stock | |
Cash from sale of investments | |
December 31, 20Y6 | |
Decrease in cash | |
Depreciation | |
For the Year Ended December 31, 20Y6 | |
Gain on sale of investments | |
Increase in cash | |
Issuance of common stock for acquisition of land | |
Issuance of common stock for purchase of equipment | |
Loss on sale of investments | |
Net cash flow from financing activities | |
Net cash flow from investing activities | |
Net cash flow from operating activities | |
Net cash flow used for financing activities | |
Net cash flow used for investing activities | |
Net cash flow used for operating activities |
Answer in this format:
1 |
Cash flows from operating activities: |
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2 |
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3 |
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4 |
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5 |
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6 |
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7 |
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8 |
Cash flows from (used for) investing activities: |
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9 |
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10 |
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11 |
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12 |
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13 |
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14 |
Cash flows from (used for) financing activities: |
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15 |
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16 |
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17 |
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18 |
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19 |
Cash at the beginning of the year |
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20 |
Cash at the end of the year |