Exercise 23-12 Condensed financial data of Martinez Company for 2017 and 2016 are presented below. MARTINEZ COMPANY COMPARATIVE BALANCE SHEET Cash Receivables Inventony Plant assets Accumulated depreciation Long-term investments (held-to-maturity) AS OF DECEMBER 31, 2017 AND 2016 2017 S1.760 1.740 1,640 1,890 2016 $1.130 1,270 1,880 1.700 (1,280 (1,150) 1,280 1,400 7,030 5 220 $6,230 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $920 260 1.520 1,660 1,870 7,030 S6.230 $1,200 190 1.380 1,870 2.390 020 $ MARTINEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains 56,970 4,780 2.190 930 1,260 Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 70 1.330 550 780 260 5520 Additional information: During the year $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017 Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with eithera - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MARTINEZ COMPANY Statement of Cash Flows Direct Method