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*Problem 13-9A Condensed financial data of Martinez SA follow. MARTINEZ SA Comparative Statements of Financial Position December 31 2017 Assets 2016 242,640 264,040 Equipment Accumulated

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*Problem 13-9A Condensed financial data of Martinez SA follow. MARTINEZ SA Comparative Statements of Financial Position December 31 2017 Assets 2016 242,640 264,040 Equipment Accumulated depreciation-equipment (51,650) (46,480) 113,500 139,550 Long-term investments Prepaid expenses 25,610 29,030 112,280 102,960 Inventory 91,450 33,100 Accounts receivable 116,200 48,450 Cash 706,070 514,610 Total Equity and Liabilities Share capital-ordinary 219,520 174,310 Retained earnings 248,360 106,280 Bonds payable Accounts payable 110,400 149,780 67,230 111,660 Accrued expenses payable 17,010 16,130 Total C706,070 514,610 MARTINEZ SA Income Statement For the Year Ended December 31, 2017 ia enue Gain on disposal of plant assets Sales rev 391,300 C 4,030 395,330 Less: Cost of goods sold 134,930 Operating expenses, excluding depreciation Depreciation expense Income tax expense 11,620 45,430 27,050 Interest expense 4,240 223,270 Net Income C172,060 Additional information: 1. New equipment costing C80,670 was purchased for cash during the year 2. Old equipment having an original cost of C59,270 and accumulated depreciation of 50,600 was sold for C12,700 cash. 3. Bonds payable matured and were.paid off at face value for cash. 4. A cash dividend of C29,980 was declared and paid during the year 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 SA Statement of Cash Flows Adjustments to reconcile net income to

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