The comparative balance sheet of Martinez Inc. for December 31, 2016 and 2015, is as follows:

The income statement for the year ended December 31, 2016, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 2016 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.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

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Dec. 31, 2016 Dec. 31, 2015 Assets Cash 661,920 992,640 1,394,400 683,100 914,400 432,000 984,000 Inventories 1,363,800 Land. Equipment. Accumulated depreciation-equipment.... 960,000 1,224,000 (481 (368 Total assets $4,751,460 $4,008,900 Liabilities and Stockholders Equity Accounts payable (merchandise creditors) . Accrued expenses payable (operating expenses) Dividends payable. Common stock, $5 par Paid-in capital: Excess of issue price over $1,080,000 67,800 100,800 130,000 950,000 2,422,860 $4.751,460 $ 966,600 79,200 91,200 30,000 450,000 2,391,900 $4,008,900 stock.... Total liabilities and stockholders' equity.... Sales Cost of merchandise sold 4,512,000 2,352,000 2,160,000 Operating expenses: 113,100 1,344,840 Other operating expenses. Total operating expenses 1,457,940 702,060 Operating income Other income: 156,000 $ 858,060 299,100 S 558,960 Net income