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

Common stock, $2 per 56000 32000

The income statement for the year ended Dec 31, 2014 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 operating activities.

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12/31/2014 12/31/2013 Assets Cash Accounts receivable (net) Inventories Investments 643,400 566,800 1,011,000 679,400 547,400 982,800 240,000 an 520,000 Equipment Accumulated depreciation 880,000 680,000 (244,400) (200,400) Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable 771,800 63,400 8,800 748,400 70,800 6,400 Paid-in Capital: excess of issue price over par common stock Retained earnings 408,000 192,000 2,068,800 1,879,600 3,376,800 2,929,200 Sales Cost of merchandise sold Gross profit Operating expenses Depreciation expense Other Operating expenses Total Operating expenses Operating Income Other expenses Loss on sale of investments Incomebefore income tax Income tax expense Net income 5,980,000 2.452,000 3,528,000 44.000 3.100,000 3,144,000 384,000 (64,000) 320,000 102,800 217,200