please dont provide image based answers Thank you The income statement for the year ended December 31, 20Y6, is as follows:Sales$1,638,590Cost of merchandise sold674,700Gross profit$963,890Operating expenses:Depreciation expenseOther operating expensesTotal operating expensesOperating incomeOther expense:Loss on sale of investmentsIncome before income taxIncome tax expenseNet income$8,060850,940859,000$104,890(30,110)$74,78023,930$50,850Additional data obtained from an examination of the accounts in the ledger for 20Y6 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 $81,410 cash.d. The common stock was issued for cash.e. There was a $21,500 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 cashoutflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows-Direct MethodThe comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:Dec. 31, 20Y6 Dec. 31, 20Y5CashAccounts receivable (net)InventoriesInvestmentsLandEquipmentAccumulated depreciation-equipmentTotal assetsAssetsLiabilities and Stockholders' EquityAccounts payableAccrued expenses payableDividends payableDepreciation expenseOther operating expensesTotal operating expensesOperating income$290,340105,180296,910Common stock, $10 parPaid-in capital: Excess of issue price over par-common stockRetained earningsTotal liabilities and stockholders' equityThe income statement for the year ended December 31, 20Y6, is as follows:Sales$1,638,590Cost of merchandise sold674,700Gross profit$963,890Operating expenses:$8,060850,940152,290327,590(76,690)$1,095,6200$198,31019,72010,96059,160222,410585,060$1,095,620859,000$104,890$270,71097,230287,860111,5200254,500(68,630)$953,190$187,78024,7808,58046,710129,630555,710$953,190

The precise cash flows related to the elements that have an impact on cash flow are presented using…

The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,638,590 Cost of merchandise sold 674,700 Gross profit $963,890 Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating income Other expense: Loss on sale of investments $8,060 850,940 859,000 $104,890 (30,110) $74,780 23,930 $50,850 Income before income tax Income tax expense Net income Additional data obtained from an examination of the accounts in the ledger for 2016 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 $81,410 cash. d. The common stock was issued for cash. e. There was a $21,500 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.