5. Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,400 were paid in cash. 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 CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities T Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities T Depreciation Expense 2600 T Loss on Sale of Equipment T Gain from Flood Damage (6900) T Increase in Accounts Receivable (Net) (3600) T Patent Amortization 1100 T Gain on Sale of Investments (1700) T Increase in Accounts Payable 2100 T Increase in Inventory (2800) * Increase in Inventory (2800) (7700) Net Cash Provided by Operating Activities 6700 A Cash Flows from Investing Activities Sale of Equipment I 2500 T Purchase of Equipment (19600) T Proceeds from Flood Damage to Building 33000 Sale of Investments A T 4700 Net Cash Provided by Investing Activities 20600 Cash Flows from Financing Activities T Payment of Dividends (4900) T Payment of Short-term Note Payable (900) T Net Cash Used by Financing Activities (5800) Net Increase in Cash 20700 Net Cash Used by Financing Activities (5800) T Net Increase in Cash 20700 T Cash, January 1, 2020 13000 TCash, December 31, 2017 33700 Supplemental disclosures of cash flow information: T Cash Paid During the Year for Interest A 2000 T Cash Paid During the Year for Income Taxes A 6400 | Noncash Investing and Financing Activities T Retired Notes Payable by Issuing Common Stock A 10000 I Purchased Equipment by Issuing Notes Payable A 16000 26000 I TNK TO TFYT