The statement of income of Cantor Industries Ltd. for the year ended December 31, 2015, is as follows:

Instructions
a. Using the information from Problem 16-3B and the additional information provided, prepare a statement of cash flows using the direct method of presenting cash flows from operating activities.
b. How does Cantor Industries' cash flow compare to its net income? Summarize the changes that caused the difference.

Sales .. $388,888 Cost of goods sold Gross profit.. Operating expenses: Depreciation expense Other operating expenses. Total operating expenses. Operating income . Other income: Gain on sale of land.. 291,666 97,222 $11,400 47.192 58,592 38,630 10.000 Income before income taxes Income taxes expense Net income 48,630 13,530 $ 35,100