26 Condensed financial data of Martinez SA follow. Comparative Statements of Financial Position MARTINEZ SA December 31 Assets Equipment 2017 2016 264,300 242,440 Accumulated depreciation-equipment (47,670 ) (51,460) Long-term investments 139,350 114,950 Prepaid expenses 29,150 25,360 Inventory 112,000 101,830 Accounts receivable 92,810 32,930 Cash 105,400 47,460 Total 695,340 513,510 Equity and Liabilities Share capital-ordinary 220,310 174,690 Retained earnings 230,310 104,950 Bonds payable 117,170 149,350 Accounts payable 111,420 67,370 Accrued expenses payable 16,130 17,150 Total 695,340 513,510 MARTINEZ SA Income Statement For the Year Ended December 31, 2017 Sales revenue 391,740 Gain on disposal of plant assets 4,670 396,410 Less: Cost of goods sold 135,140 Operating expenses, excluding depreciation 11,670 Depreciation expense 46,310 Income tax expense 27,530 Interest expense Net income 4,580 225,230 171,180 Additional information: 1. New equipment costing 80,090 was purchased for cash during the year. 2. Old equipment having an original cost of 58,230 and accumulated depreciation of 50,100 was sold for 12,800 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of 45,820 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MARTINEZ SA Statement of Cash Flows