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 $31,20$Y$6$

Decrease in cash

Depreciation expense

For the Year Ended December $31,20$Y$6$

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

The comparative balance sheet of Canace Products Inc. for December $31,20$Y$6$ and $20$Y$5,$ is shown as follows:

$1$

Dec. $31,20$Y$6$

Dec. $31,20$Y$5$

$2$

Assets

$3$

Cash

$$643,400\mathrm{.}00$

$$679,400\mathrm{.}00$

$4$

Accounts receivable $($net$)$

$566,800\mathrm{.}00$

$547,400\mathrm{.}00$

$5$

Inventories

$1,011,000\mathrm{.}00$

$982,800\mathrm{.}00$

$6$

Investments

$0\mathrm{.}00$

$240,000\mathrm{.}00$

$7$

Land

$520,000\mathrm{.}00$

$0\mathrm{.}00$

$8$

Equipment

$880,000\mathrm{.}00$

$680,000\mathrm{.}00$

$9$

Accumulated depreciation

$(244,400\mathrm{.}00)$

$(200,400\mathrm{.}00)$

$10$

Total assets

$$3,376,800\mathrm{.}00$

$$2,929,200\mathrm{.}00$

$11$

Liabilities and Stockholders$$ Equity

$12$

Accounts payable

$$771,800\mathrm{.}00$

$$748,400\mathrm{.}00$

$13$

Accrued expenses payable

$63,400\mathrm{.}00$

$70,800\mathrm{.}00$

$14$

Dividends payable

$8,800\mathrm{.}00$

$6,400\mathrm{.}00$

$15$

Common stock, $$2$ par

$56,000\mathrm{.}00$

$32,000\mathrm{.}00$

$16$

Paid$-$in capital: Excess of issue price over par$$common stock

$408,000\mathrm{.}00$

$192,000\mathrm{.}00$

$17$

Retained earnings

$2,068,800\mathrm{.}00$

$1,879,600\mathrm{.}00$

$18$

Total liabilities and stockholders$$ equity

$$3,376,800\mathrm{.}00$

$$2,929,200\mathrm{.}00$

The income statement for the year ended December $31,20$Y$6,$ is as follows:

$1$

Sales

$$5,980,000\mathrm{.}00$

$2$

Cost of merchandise sold

$2,452,000\mathrm{.}00$

$3$

Gross profit

$$3,528,000\mathrm{.}00$

$4$

Operating expenses:

$5$

Depreciation expense

$$44,000\mathrm{.}00$

$6$

Other operating expenses

$3,100,000\mathrm{.}00$

$7$

Total operating expenses

$3,144,000\mathrm{.}00$

$8$

Operating income

$$384,000\mathrm{.}00$

$9$

Other expense:

$10$

Loss on sale of investments

$(64,000\mathrm{.}00)$

$11$

Income before income tax

$$320,000\mathrm{.}00$

$12$

Income tax expense

$102,800\mathrm{.}00$

$13$

Net income

$$217,200\mathrm{.}00$

Additional data obtained from an examination of the accounts in the ledger for $20$Y$6$ 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.

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.

part $2-$ same type of question

The comparative balance sheet of Navaria Inc. for December $31,20$Y$3$ and $20$Y$2,$ is as follows:

$1$

Dec. $31,20$Y$3$

Dec. $31,20$Y$2$

$2$

Assets

$3$

Cash

$$155,000\mathrm{.}00$

$$150,000\mathrm{.}00$

$4$

Accounts receivable $($net$)$

$450,000\mathrm{.}00$

$400,000\mathrm{.}00$

$5$

Inventories

$770,000\mathrm{.}00$

$750,000\mathrm{.}00$

$6$

Investments

$0\mathrm{.}00$

$100,000\mathrm{.}00$

$7$

Land

$500,000\mathrm{.}00$

$0\mathrm{.}00$

$8$

Equipment

$1,400,000\mathrm{.}00$

$1,200,000\mathrm{.}00$

$9$

Accumulated depreciation$-$equipment

$(600,000\mathrm{.}00)$

$(500,000\mathrm{.}00)$

$10$

Total assets

$$2,675,000\mathrm{.}00$

$$2,100,000\mathrm{.}00$

$11$

Liabilities and Stockholders$$ Equity

$12$

Accounts payable

$$340,000\mathrm{.}00$

$$300,000\mathrm{.}00$

$13$

Accrued expenses payable

$45,000\mathrm{.}00$

$50,000\mathrm{.}00$

$14$

Dividends payable

$30,000\mathrm{.}00$

$25,000\mathrm{.}00$

$15$

Common stock, $$4$ par

$700,000\mathrm{.}00$

$600,000\mathrm{.}00$

$16$

Paid$-$in capital: Excess of issue price over par$$common stock

$200,000\mathrm{.}00$

$175,000\mathrm{.}00$

$17$

Retained earnings

$1,360,000\mathrm{.}00$

$950,000\mathrm{.}00$

$18$

Total liabilities and stockholders$$ equity

$$2,675,000\mathrm{.}00$

$$2,100,000\mathrm{.}00$

The income statement for the year ended December $31,20$Y$3,$ is as follows:

$1$

Sales

$$3,000,000\mathrm{.}00$

$2$

Cost of merchandise sold

$1,400,000\mathrm{.}00$

$3$

Gross profit

$$1,600,000\mathrm{.}00$

$4$

Operating expenses:

$5$

Depreciation expense

$$100,000\mathrm{.}00$

$6$

Other operating expenses

$950,000\mathrm{.}00$

$7$

Total operating expenses

$1,050,000\mathrm{.}00$

$8$

Operating income

$$550,000\mathrm{.}00$

$9$

Other income:

$10$

Gain on sale of investments

$75,000\mathrm{.}00$

$11$

Income before income tax

$$625,000\mathrm{.}00$

$12$

Income tax expense

$125,000\mathrm{.}00$

$13$

Net income

$$500,000\mathrm{.}00$

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