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Exercise 22-1 Martinez House Inc. had the following condensed statement of financial position at December 31, 2019: MARTINEZ HOUSE INC. Statement of Financial Position December

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Exercise 22-1 Martinez House Inc. had the following condensed statement of financial position at December 31, 2019: MARTINEZ HOUSE INC. Statement of Financial Position December 31, 2019 Cash $10,700 Current liabilities Current assets (non-cash) 34.500 Long-term notes payable Bond Investment at amortized cost 40,850 Bonds payable Plant assets (net) 59.250 Common shares Land 38,650 Retained earnings $182.950 $15,250 30,700 32.150 80,850 24,000 $182.950 Martinez House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. During 2020, the following occurred: 1. Martinez House Inc. sold part of its investment portfolio in bonds for $16,300, resulting in a gain of $200. 2. Dividends totalling $19,000 were paid to shareholders. 3. A parcel of land, to be used as a parking lot, was purchased for $3,500. 4. Common shares were issued for cash totalling $18,900. 5. Bonds payable of $9,400 were retired at par. 6. Equipment was purchased through the issuance of $29,000 of bonds 7. Net income for 2020 was $47,000 after allowing for depreciation on Martinez House Inc.'s plant assets of $14,500. The amount of interest paid during 2020 was $4,220 and the amount of income taxes paid was $20,600. 8. Both current assets (other than cash) and current liabilities remained at the same amount. Prepare a statement of cash flows for 2020 using the Indirect method. (Show amounts that decrease cash flow with either a (15,000).) signe.. 15.000 or in parenthesis e.g. MARTINEZ HOUSE INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to net cash provided by operating activities: Supplemental disclosures of cash flow information: LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare a condensed statement of financial position at December 31, 2020, for Martinez House Inc. (List Assets in order of liquidity.) MARTINEZ HOUSE INC. Statement of Financial Position Assets Liabilities and Equity

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