1. Statement of Cash FlowsDirect Method applied to PR 16-1A

   The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is as follows:

   	Dec. 31, 20Y3			Dec. 31, 20Y2
   Assets
   Cash	$ 212,960			$ 201,740
   Accounts receivable (net)	78,400			71,930
   Inventories	220,990			212,490
   Investments	0			82,680
   Land	113,270			0
   Equipment	241,500			190,160
   Accumulated depreciation-equipment	(57,500)			(51,300)
   Total assets	$809,620			$707,700
   Liabilities and Stockholders' Equity
   Accounts payable	$ 146,390			$ 139,420
   Accrued expenses payable	14,720			18,400
   Dividends payable	8,000			6,400
   Common stock, $1 par	43,200			33,260
   Paid-in capital: Excess of issue price over par-common stock	164,600			96,250
   Retained earnings	432,710			413,970
   Total liabilities and stockholders equity	$809,620			$707,700

   The income statement for the year ended December 31, 20Y3, is as follows:

   Sales		$1,332,800
   Cost of merchandise sold		819,670
   Gross profit		$ 513,130
   Operating expenses:
   Depreciation expense	$ 6,200
   Other operating expenses	434,490
   Total operating expenses		440,690
   Operating income		$ 72,440
   Other income:
   Gain on sale of investments		13,800
   Income before income tax		$ 86,240
   Income tax expense		34,500
   Net income		$ 51,740

   Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:

   1. The investments were sold for $96,480 cash.
   2. Equipment and land were acquired for cash.
   3. There were no disposals of equipment during the year.
   4. The common stock was issued for cash.
   5. There was a $33,000 debit to Retained Earnings for cash dividends declared.

   Required:

   Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

   Navaria Inc.
   Statement of Cash Flows
   For the Year Ended December 31, 20Y3
   Cash flows from operating activities:
   	$
   Net cash flow from operating activities		$
   Cash flows from (used for) investing activities:
   	$
   Net cash flow used for investing activities
   Cash flows from (used for) financing activities:
   	$
   Net cash flow from financing activities
   		$
   Cash at the beginning of the year
   Cash at the end of the year		$