Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows".

This homework is worth a total of $10$ possible points $--8$ for the SCF and $2$ for appropriate use of Excel $($i$.$e$.,$ no amounts hard coded, use of formulas where possible and proper formatting$)$ within the SCF$.$

Tips:

$1)$ Follow the steps provided in class to create the SCF$,$ including using supporting T accounts.

$2)$ Record the journal entry for the sale of equipment to determine the cash effect of this transaction

$3)$ If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error.Martinez Inc

Balance Sheet and Income Statement Data

$12/31/202512/31/2024$Current Assets:Cash $ $5,900$ $ $6,900$ Accounts Receivable $61,40051,200$ Inventory $45,20063,800$ Total Current Assets $112,500121,900$ PPE $152,700130,200$ Accumulated Depreciation $(35,400)(25,000)$Land $80,40067,900$ Total Assets $ $310,200$ $ $295,000$ Current Liabilities:Accounts Payable $ $46,300$ $ $40,400$ Wages Payable $12,0009,900$ LT Notes Payable $68,30079,500$ Total Liabilities $126,600129,800$ Stockholders' Equity:Common Stock $130,000130,000$ Retained Earnings $53,60035,200$ Total Stockholders' Equity $183,600165,200$ Total Liabilities & Stockholders' Equity $ $310,200$ $ $295,000$ Sales Revenue $ $335,000$ Less Cost of Goods Sold $175,125$ Gross Profit $159,875$ Operating Expenses $(120,100)$Operating Income $39,775$ Interest Expense $(11,400)$Gain on Sale of Equipment $2,500$ Income Before Taxes $30,875$ Less Income Tax Expense $6,075$ Net Income $ $24,800$ Additional Information:$1)$ The company sold equipment that had an original cost of$$20,100$ Amount equipment was depreciated at sale$70\%$

$2)$ There have been no sales of land during the year.

$3)$ Depreciation expense is included in operating expenses.

$4)$ There have been no additional borrowings under the long term note payable.

$5)$ There has been no repurchase of treasury stock.

$6)$ Dividends were declared and paid during $2025$

Can you show the transaction for each t account? And how?