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:

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 operating activities.

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Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash.... $ 643,400 $ 679,400 Accounts receivable (net).. 566,800 547,400 Inventories... 1,011,000 982,800 Investments. 240,000 Land... 520,000 Equipment.. 880,000 680,000 Accumulated depreciation... (200,400) (244,400) $3,376,800 Total assets. $2,929,200 Liabilities and Stockholders'Equity Accounts payable... Accrued expenses payable.. Dividends payable... Common stock, $2 par... $ 771,800 $ 748,400 63,400 70,800 8,800 6,400 56,000 32,000 Paid-in capital in excess of par.. Retained earnings... Total liabilities and stockholders' equity. . 408,000 192,000 2,068,800 $3,376,800 1,879,600 $2,929,200