The comparative balance sheet of Canace Products Inc. for December 31, 2014 and 2013, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 2014 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 $176,000 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 operatingactivities.

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Dec. 31, 2014 Dec. 31, 2013 Assets 679,400 547,400 982,800 240,000 566,800 1,011,000 Inventories Investments Land.. Equipment. 520,000 880,000 (244,400) $3,376,800 680,000 (200400) $2,929,200 Liabilities and Stockholders Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) . . Dividends payable. Common stock, $2 par._. Paid-in capital: Excess of issue price over par-common stock 771,800 63,400 8,800 56,000 408,000 2,068,800 $3,376,800 748,400 70,800 6,400 32,000 192,000 1,879,600 $2,929,200 .. The income statement for the year ended December 31, 2014, is as follows: Cost of merchandise sold Gross profit Operating expenses: $5,980,000 2452,000 $3,528,000 Depreciation exp Other operating expenses 44,000 3,100,000 3,144,000 S 384,000 Other expense (64,000) 320,000 102,800 217,200 Income before income tax Income tax expense