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lig isi lows fro operating activities. Appendix 2 PR 13-4B Statement of cash flows-direct method The comparative balance sheet of Martinez Inc. for December 31,
lig isi lows fro operating activities. Appendix 2 PR 13-4B Statement of cash flows-direct method The comparative balance sheet of Martinez Inc. for December 31, 20Y4 and 20Y3, is as follow Dec. 31, 20Y4 Dec. 31,20Y3 Assets 661,920 992,640 1,394,400 683,100 914,400 1,363,800 432,000 Cash Accounts receivable (net) Inventories . . . . Investments . .. 960,000 1,224,000 (481,500) $4,751,460 984,000 (368400) $4,008,900 Accumulated depreciation- equipment . . . Liabilities and Stockholders' Equity $ 966,600 79,200 91,200 30,000 450,000 2,391,900 $4,008,900 $1,080,000 67,800 100,800 130,000 950,000 2,422,860 $4,751,460 Accounts payable (merchandise creditors) . .. . Accrued expenses payable (operating expenses) Common stock, $5 par Paid-in capital: Excess of issue price over par-common stock The income statement for the year ended December 31, 20Y3, is as follows: Sales . $4,512,000 2,352,000 $2,160,000 Gross profit . Operating expenses . Depreciation expense Other operating expenses $ 113,100 1.344,840 1,457,940 $ 702,060 Total operating expenses Other income: 156,000 858,060 299,100 $ 558,960 Income before income tax . .. . . . . .. . Income tax expense Net income 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. Instructions direct method of presenting cash flows from operating activities
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