These items are taken from the financial statements of Martinez Corp. at December 31, 2022.

Buildings $107,800

Accounts receivable 11,400

Prepaid insurance 4,680

a. Calculate the net income for the year.

b. Prepare a classified statement of financial position. Assume that $13,600 of the bank loan payable will be paid in 2023.

Cash 11,840

Equipment 82,000

Land 60,400

Office expense 580

Income tax expense 200

Depreciation expense 5,400

Interest expense 2,300

Common shares 62,000

Retained earnings (January 1, 2022) 40,000

Accumulated depreciationbuildings 45,700

Accounts payable 8,200

Income taxes payable 1,200

Bank loan payable (due July 1, 2024) 93,200

Accumulated depreciationequipment 18,720

Interest payable 3,600

Sales 13,980