Reference no: EM132957322

Martinez Corp.'s income statement for the year ended December 31, 2020, had the following condensed information:

Sales revenue $768,600

Operating expenses (excluding depreciation) $488,000

Depreciation expense 59,000

Unrealized loss on FV-NI investments 4,100

Loss on disposal of equipment 12,500

563,600

Income before income taxes 205,000

Income tax expense 50,000

Net income $155,000

There were no purchases or sales of trading (FV-NI) investments during 2020.

Martinez's statement of financial position included the following comparative data at December 31:

                                                               2020                     2019

FV-NI investments                         $22,000                  $26,100

Accounts receivable                        35,300                     55,000

Accounts payable                            45,400                       31,900

Income tax payable                            8,100                           9,400

Problem 1: Prepare the operating activities section of the statement of cash flows using the indirect method