he 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

he 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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

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