Prepare the statement of cash flows worksheet

Comparative balance sheet accounts of Martinez Company are presented below. MARTINEZ COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2020 2019 Cash $69,600 $51,100 Accounts Receivable 156,500 130,000 Inventory 75,700 60,800 Debt investments (available-for-sale) 55,000 85,300 Equipment 69,600 47,800 Buildings 144,900 144,900 Land 39,600 25,200 Totals $610,900 $545,100 Credit Balances Allowance for Doubtful Accounts Accumulated Depreciation Equipment Accumulated Depreciation Buildings Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings Totals $10,000 $8,000 20,800 14,100 37,000 27,900 66,500 59,800 11,900 10,000 62,000 70,000 310,000 260,000 92,700 95,300 $610,900 $545,100 Additional data: Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2020. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $34,800 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Martinez's 2020 income statement is as follows. $955,000 601,700 353,300 252,500 100,800 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses (includes depreciation expense and bad debt expense) Income from operations Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $15,000 (2,900) 12,100 112,900 45,300 $67,600 (a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MARTINEZ COMPANY Statement of Cash Flows Adjustments to reconcile net income to