Statement of Cash Flows-Direct Method The comparative balance sheet of Martinez Inc. for December 31, 20Y4 and 20Y3, is as follows: Dec. 31, 2014 Dec. 31, 20Y3 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 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $1,080,000 $966,600 Accrued expenses payable (operating expenses) 67,800 79,200 Dividends payable 100,800 91,200 Common stock, $5 par 130,000 30,000 Paid-in capital in excess of par-common stock 950,000 450,000 Retained earnings 2,422,860 2,391,900 Total liabilities and stockholders' equity $4,751,460 $4,008,900 The income statement for the year ended December 31, 2013, is as follows: Sales $4,512,000 Cost of goods sold (2,352,000) Gross profit $2,160,000 Operating expenses: Depreciation expense $113,100 Other operating expenses 1,344,840 Total operating expenses (1,457,940) Operating income $702,060 Other revenue: Gain on sale of investments 156,000 Income before income tax $858,060 Income tax expense (299,100) Net income $558,960 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. Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash 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: Net cash flow used for investing activities Cash flows from (used for) financing activities: $ Net cash flow from financing activities Cash balance, January 1, 2014 Cash balance, December 31, 2014