Statement of Cash Flows--Direct Method The comparative balance sheet of Martinez Inc. for December 31, 2014 and 2043, is as follows: Dec 31, 2014 Dec. 31, 2093 Assets Cash $661,920 $683,100 Accounts receivable (net) 992,640 914,400 Inventories 1,394,400 1,363,800 Investments 0 432,000 Land 960,000 0 Equipment 1,224,000 984,000 Accumulated depreciation-equipment (481,500) (368,400) Total assets $4,751,460 $4,008,900 $1,080,000 67,800 100,800 $966,600 79,200 91,200 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $5 par Pald-in capital in excess of par-common stock Retained carings Total liabilities and stockholders' equity 130,000 30,000 950,000 450,000 2,422,860 $4,751,460 2,391,900 $4,008,900 The income statement for the year ended December 31, 2013, is as follows: Check My Work The income statement for the year ended December 31, 2043, is as follows: Sales $4,512,000 (2,352,000) $2,160,000 $113,100 1,344,840 Cost of goods sold Gross profit Operating expenses Depreciation expense Other operating expenses Total operating expenses Operating income Other revenue Gain on sale of investments Income before income tax Income tax expense Net income (1,457,940) $702,060 156,000 $858,060 (299,100) $558,960 Additional data obtained from an examination of the accounts in the ledger for 2073 are as follows: a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year. The investments were sold for $588,000 cash d. The common stock was issued for cash There was a $528,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct method of presenting cash nows from operating activities. Use the minus sign to indicate cash outlows, cast payments, decreases in cash, or any negative adjustments Check My Work Previous Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indica payments, decreases in cash, or any negative adjustments. Martinez Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from (used for) operating activities: Net cash flow from operating activities Cash flows from (used for) investing activities: o Net cash flow used for investing activities Cash flows from (used for) financing activities: I DO Net cash flow from financing activities Cash balance, January 1, 2014 Cash balance December 31, 2014 Check My Work