PR 16-4A Statement of cash flows-direct method 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 fron (used for) operating activities. CANACE PRODUCTS INC. Statement of Cash Flows For the Year Ended December 31, 20Ys Cash fows from operating activited Cash recelved trom customen Deduct: Net cash fiow from operating activlies Cach flows from investing activies: Cash receved from saie of investments Less: Net cath flow used for investing actives Cash fown from financing actories: Cash received trom sale of common stock Less: Net cash fow from financing activties Decresse in cash Cash at the beginning of the year Cash at the end of the year Schedule Reconclling Net income with Cash Flows from Operating Activitles: Not income Adjustments to reconcile not income to net cash flow from operating activities: Deproclation expense Loss on saie of investments Changes in cument operating assets and labities: Nat cash fow from operating activties Computatons: 1. Sales Cash recelved from customers \begin{tabular}{|} \hline \\ \hline & \\ \hline \end{tabular}