Canace Products Inc. Income Statement For the Year ended December 31, 2014 $5,980,000 2,452,000 Sales Cost of Merchandise Sold Gross Profit 3,528,000 Operating Expenses Depreciation Expense Other Operating Expenses $44,000 3,100,000 Total Operating Expenses 3,144,000 384,000 Operating Income Other Expenses (64,000) Loss on Sale of Investments Income before Income Tax 320,000 Income Tax Expense 102,800 $217,200 Net Income Additional Information: Equipment and Land were acquired for cash. b. There were no disposals of equipment during the year. а. Investments were sold for cash. С. Common Stock was issued for cash. No Treasury Shares were purchased. Cash Dividends were declared and paid during the year. d. е. Instructions: Prepare the Statement of Cash Flows for the year ended, December 31, 2014 using the Indirect Method Canace Products Inc. Comparative Balance Sheet December 31, 2014 and 2013 Assets 2014 $643,400 2013 $679,400 Cash Accounts Receivable (Net) 566,800 1,011,000 547,400 982,800 240,000 Inventories Investments 0 Land 520,000 0 Equipment Accumulated Depreciation 880,000 680,000 (200,400) $2,929,200 (244,400) $3,376,800 Total Assets Liabilities and Equity 2013 $748,400 2014 Accounts Payable $771,800 Accrued Expenses Payable Common Stock, $2 Par Paid-in Capital in Excess of Par Retained Earnings Total Liabilities and Equity 72,200 56,000 77,200 32,000 408,000 192,000 2,068,800 1,879,600 $2,929,200 $3,376,800 Cannco Droducts Inc

$ 217,200 Canace Products Inc. Statement of Cash flows For the year ended 31st December 2014 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of Investment Increase n Accounts receivables Increase in inventory Increase in Accounts payables Decrease in Accured Expenses Payable Net cash flow from operating activities Cash flows from investing activities Sale of investment Purchase of land Purchase of equipment Net cash flow from investing activities Cash flows from financing activities Issuance of Common Stock Dividend paid Net cash flow from financing activities 44,000 64,000 (19,400) (28,200) 23,400 (5,000) $ $ 78,800 296,000 176,000 (520,000) (200,000) $ (544,000) 240,000 (28,000) $ 212,000 Net increase in cash Cash at the beginning of the yaer Cash at the end of the year S (36,000) S 679,400 S 643,400 Working Notes: Dividends paid Opening balance of Retained Earnings Add: Net Income $ $ $ $ $ 1,879,600 217,200 2,096,800 2,068,800 28,000 Less: Closing balance of Retained Earnings Dividends paid Sale of equipment Cost of Equipment Less: loss on sale of Equipment Sale of Equipment $ $ 240.000 64,000 176,000 .

Canace Products Inc. Income Statement For the Year en…

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$ 217,200 Canace Products Inc. Statement of Cash flows For the year ended 31st December 2014 Cash flows from operating activi

Net increase in cash Cash at the beginning of the yaer Cash at the end of the year S (36,000) S 679,400 S 643,400 Working Not

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Canace Products Inc. Income Statement For the Year ended December 31, 2014 $5,980,000 2,452,000 Sales Cost...

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