Statement of Cash Flows—Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $277,770 $258,990...

Statement of Cash Flows—Direct Method

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

	Dec. 31, 20Y6	Dec. 31, 20Y5
Assets
Cash	$277,770		$258,990
Accounts receivable (net)	100,630		93,020
Inventories	284,060		275,390
Investments	0		106,700
Land	145,700		0
Equipment	313,410		243,490
Accumulated depreciation-equipment	(73,370)		(65,660)
	Total assets	$1,048,200		$911,930

Liabilities and Stockholders' Equity
Accounts payable	$189,720		$179,650
Accrued expenses payable	18,870		23,710
Dividends payable	10,480		8,210
Common stock, $10 par	56,600		44,680
Paid-in capital: Excess of issue price over par-common stock	212,780		124,020
Retained earnings	559,750		531,660
	Total liabilities and stockholders’ equity	$1,048,200		$911,930

The income statement for the year ended December 31, 20Y6, is as follows:

Sales			$1,566,470
Cost of merchandise sold			645,000
Gross profit			$921,470
Operating expenses:
	Depreciation expense	$7,710
	Other operating expenses	813,490
		Total operating expenses		821,200
Operating income			$100,270
Other expense:
		Loss on sale of investments		(28,810)
Income before income tax			$71,460
Income tax expense			22,870
Net income			$48,590

Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $77,890 cash.

The common stock was issued for cash.

There was a $20,500 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.

Canace Products Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y6
Cash flows from operating activities:
	$fill in the blank 2
	fill in the blank 4
	fill in the blank 6
	fill in the blank 8
Net cash flow from operating activities		$fill in the blank 9
Cash flows from (used for) investing activities:
	$fill in the blank 11
	fill in the blank 13
	fill in the blank 15
Net cash flow used for investing activities		fill in the blank 16
Cash flows from (used for) financing activities:
	$fill in the blank 18
	fill in the blank 20
Net cash flow from financing activities		fill in the blank 21
		$fill in the blank 23
Cash at the beginning of the year		fill in the blank 24
Cash at the end of the year		$fill in the blank 25

Jun 01, 2022

SOLUTION.PDF

Statement of Cash Flows—Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $277,770 $258,990...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment