Exercise 5-14

The comparative balance sheets of Martinez Inc. at the beginning and the end of the year 2017 are as follows.

MARTINEZ INC.

BALANCE SHEETS

Dec.31,2017

Jan. 1, 2017

Inc./Dec.

AssetsCash$47,130$15,130$32,000Inc.Accounts receivable94,17089,0405,130Inc.Equipment42,17023,04019,130Inc.Less: Accumulated Depreciation-Equipment20,17011,0009,170Inc.Total$163,300$116,210Liabilities and Stockholders EquityAccounts payable$23,170$16,0407,130Inc.Common stock102,13081,04021,090Inc.Retained earnings38,00019,13018,870Inc.Total$163,300$116,210

Net income of $47,170was reported, and dividends of $28,300were paid in 2017. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2017.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

MARTINEZINC.

Statement of Cash Flows

December 31, 2017

For the Year Ended December 31, 2017

For the Quarter Ended December 31, 2017

Cash at Beginning of Year

Cash at End of Year

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Payment of Cash Dividends

Net Income

Depreciation Expense

Increase in Accounts Receivable

Purchase of Equipment

Increase in Accounts Payable

Issuance of Common Stock

$

Adjustments to reconcile net income to

Cash at Beginning of Year

Cash at End of Year

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash Used by Financing Activities

Net Cash Used by Investing Activities

Net Cash Used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Issuance of Common Stock

Increase in Accounts Payable

Payment of Cash Dividends

Net Income

Purchase of Equipment

Depreciation Expense

Increase in Accounts Receivable

$

Issuance of Common Stock

Net Income

Depreciation Expense

Increase in Accounts Payable

Payment of Cash Dividends

Increase in Accounts Receivable

Purchase of Equipment

Purchase of Equipment

Issuance of Common Stock

Increase in Accounts Receivable

Depreciation Expense

Payment of Cash Dividends

Increase in Accounts Payable

Net Income

$

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