A comparative statement of financial position for Martinez Corporation follows:

MARTINEZ CORPORATION

Statement of Financial Position

December 31

Assets

2020 2019

Cash

$61,100

$27,260

Accounts receivable

81,780

55,460

Inventory

125,020

76,140

FV-OCI investments in shares

59,220

78,960

Land

61,100

96,820

Equipment

366,600

404,200

Accumulated depreciationequipment

(109,980 ) (80,840 )

Goodwill 116,560

162,620

Total $761,400

$820,620

Liabilities and Shareholders' Equity

Accounts payable

$11,280 $47,940

Dividends payable

14,100

30,080

Notes payable

206,800

314,900

Common shares

249,100

117,500

Retained earnings

270,720

266,960

Accumulated other comprehensive income

9,400

43,240

Total $761,400

$820,620

Additional information:

1. Net income for the fiscal year ending December 31, 2020, was $17,860.

2. In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $80,840 was sold for proceeds of $89,300.

3. In April 2020, notes payable amounting to $131,600 were retired through the issuance of common shares. In December 2020, notes payable amounting to $23,500 were issued for cash.

4. FV-OCI investments were purchased in July 2020 for a cost of $14,100. By December 31, 2020, the fair value of Martinez's portfolio of FVOCI investments decreased to $59,220. No FVOCI investments were sold in the year.

5. On December 31, 2020, equipment with an original cost of $37,600 and accumulated depreciation to date of $11,280 was sold for proceeds of $19,740. No equipment was purchased in the year.

6. Dividends on common shares of $30,080 and $14,100 were declared in December 2019 and December 2020, respectively. The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities.

7. A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year.

(a)

A statement of cash flows using the indirect method for cash flows from operating activities.