eBook Show Me How Statement of Cash Flows-Direct Method The comparative balance sheet of Martinez Inc. for December 31, 2014 and 2043, is as follows: Dec. 31, 2014 Dec. 31, 2013 Assets Cash $661,920 992,640 Accounts receivable (net) Inventories $683,100 914,400 1,363,800 1,394,400 Investments 0 432,000 Land 0 960,000 1,224,000 (481,500) Equipment Accumulated depreciation-equipment Total assets 984,000 (368,400) $4,008,900 $4,751,460 $1,080,000 $966,600 67,800 79,200 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $5 par Paid-in capital in excess of par-common stock 91,200 100,800 130,000 30,000 950,000 450,000 Check My Work eBOOK 30,000 130,000 950,000 2,422,860 Common stock, $5 par Paid-in capital in excess of par--common stock Retained earnings Total liabilities and stockholders' equity 450,000 2,391,900 $4,008,900 $4,751,460 The income statement for the year ended December 31, 20Y3, is as follows: Sales Cost of goods sold $4,512,000 (2,352,000) $2,160,000 $113,100 1,344,840 (1,457,940) Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating income Other revenue: Gain on sale of investments Income before income tax Income tax expense Net income h $702,060 156,000 $858,060 (299,100) $558,960 Check My Work eBook Show Me How Net income $558,960 Additional data obtained from an examination of the accounts in the ledger for 20Y3 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 $588,000 cash. d. The common stock was issued for cash. e. There was a $528,000 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 min outflows, cash payments, decreases in cash, or any negative adjustments. Martinez Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from (used for) operating activities: Cash received from customers $14,433,760 Cash payments for merchandise 2.269.200 X Cash payments for operating expenses 1,356,240 x Cash payments for income tax 233,100 X 509.220 Net cash flow from operating activities Cash flows from (used for) Investing activities: Check My Work eBook Show Me How Martinez Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from (used for) operating activities: Cash received from customers 4.433,760 Cash payments for merchandise 2,269,200 X Cash payments for operating expenses 1,356,240 X Cash payments for income tax 233.100 X 509,220 Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments 588,000 960,000 X Cash paid for land Cash paid for equipment 612,000 X Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock 5 600.000 510.400 X Cash paid for dividends 612.000 X Net cash flow from financing activities Net decrease in cash $ 21.180 X Check My Work Paused 612,000 X takeAssignment/take AssignmentMain doinvoker=&takeAssignmentSessionlocator-inprogressfake Cash received from sale of investments 583,000 Cash paid for land 960.000 X Cash paid for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock 600.000 Cash paid for dividends Net cash flow from financing activities 612.000 X Net decrease in cash 518.400 X 21.110 X Cash balance, January 1, 2014 Cash balance, December 31, 2014 Check My Wor Consider what accounts) would have an impact on determy how much cash is received during the ponad Which accounts would have an impact on determining how much was paid out in cash during the period? Were there any purchases of sales of noncurrents during the year? Did the company engage in any activities that affected the equity or debt in their company? Previous Check My Work Email instructor Save and Exx Submit Assignment for Grading All work saved eBook Show Me How Statement of Cash Flows-Direct Method The comparative balance sheet of Martinez Inc. for December 31, 2014 and 2043, is as follows: Dec. 31, 2014 Dec. 31, 2013 Assets Cash $661,920 992,640 Accounts receivable (net) Inventories $683,100 914,400 1,363,800 1,394,400 Investments 0 432,000 Land 0 960,000 1,224,000 (481,500) Equipment Accumulated depreciation-equipment Total assets 984,000 (368,400) $4,008,900 $4,751,460 $1,080,000 $966,600 67,800 79,200 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $5 par Paid-in capital in excess of par-common stock 91,200 100,800 130,000 30,000 950,000 450,000 Check My Work eBOOK 30,000 130,000 950,000 2,422,860 Common stock, $5 par Paid-in capital in excess of par--common stock Retained earnings Total liabilities and stockholders' equity 450,000 2,391,900 $4,008,900 $4,751,460 The income statement for the year ended December 31, 20Y3, is as follows: Sales Cost of goods sold $4,512,000 (2,352,000) $2,160,000 $113,100 1,344,840 (1,457,940) Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating income Other revenue: Gain on sale of investments Income before income tax Income tax expense Net income h $702,060 156,000 $858,060 (299,100) $558,960 Check My Work eBook Show Me How Net income $558,960 Additional data obtained from an examination of the accounts in the ledger for 20Y3 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 $588,000 cash. d. The common stock was issued for cash. e. There was a $528,000 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 min outflows, cash payments, decreases in cash, or any negative adjustments. Martinez Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from (used for) operating activities: Cash received from customers $14,433,760 Cash payments for merchandise 2.269.200 X Cash payments for operating expenses 1,356,240 x Cash payments for income tax 233,100 X 509.220 Net cash flow from operating activities Cash flows from (used for) Investing activities: Check My Work eBook Show Me How Martinez Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from (used for) operating activities: Cash received from customers 4.433,760 Cash payments for merchandise 2,269,200 X Cash payments for operating expenses 1,356,240 X Cash payments for income tax 233.100 X 509,220 Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments 588,000 960,000 X Cash paid for land Cash paid for equipment 612,000 X Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock 5 600.000 510.400 X Cash paid for dividends 612.000 X Net cash flow from financing activities Net decrease in cash $ 21.180 X Check My Work Paused 612,000 X takeAssignment/take AssignmentMain doinvoker=&takeAssignmentSessionlocator-inprogressfake Cash received from sale of investments 583,000 Cash paid for land 960.000 X Cash paid for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock 600.000 Cash paid for dividends Net cash flow from financing activities 612.000 X Net decrease in cash 518.400 X 21.110 X Cash balance, January 1, 2014 Cash balance, December 31, 2014 Check My Wor Consider what accounts) would have an impact on determy how much cash is received during the ponad Which accounts would have an impact on determining how much was paid out in cash during the period? Were there any purchases of sales of noncurrents during the year? Did the company engage in any activities that affected the equity or debt in their company? Previous Check My Work Email instructor Save and Exx Submit Assignment for Grading All work saved