Condensed financial data of Martinez Company for 2020 and 2019 are presented below. MARTINEZ COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019     2020   2019 Cash   $1,780     $1,130   Receivables   1,740     1,290   Inventory   1,610     1,870   Plant assets   1,930     1,710   Accumulated depreciation   (1,210 )   (1,150 ) Long-term investments (held-to-maturity)   1,290     1,440       $7,140     $6,290                 Accounts payable   $1,180     $900   Accrued liabilities   190     240   Bonds payable   1,410     1,590   Common stock   1,920     1,690   Retained earnings   2,440     1,870       $7,140     $6,290     MARTINEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue   $6,880 Cost of goods sold   4,650 Gross margin   2,230 Selling and administrative expenses   940 Income from operations   1,290 Other revenues and gains        Gain on sale of investments   80 Income before tax   1,370 Income tax expense   540 Net income   830 Cash dividends   260 Income retained in business   $570

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Condensed financial data of Martinez Company for 2020 and 2019 are presented below.

MARTINEZ COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
   
2020
 
2019
Cash
 
$1,780
   
$1,130
 
Receivables
 
1,740
   
1,290
 
Inventory
 
1,610
   
1,870
 
Plant assets
 
1,930
   
1,710
 
Accumulated depreciation
 
(1,210
)
 
(1,150
)
Long-term investments (held-to-maturity)
 
1,290
   
1,440
 
   
$7,140
   
$6,290
 
             
Accounts payable
 
$1,180
   
$900
 
Accrued liabilities
 
190
   
240
 
Bonds payable
 
1,410
   
1,590
 
Common stock
 
1,920
   
1,690
 
Retained earnings
 
2,440
   
1,870
 
   
$7,140
   
$6,290
 

 

MARTINEZ COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
 
$6,880
Cost of goods sold
 
4,650
Gross margin
 
2,230
Selling and administrative expenses
 
940
Income from operations
 
1,290
Other revenues and gains
   
   Gain on sale of investments
 
80
Income before tax
 
1,370
Income tax expense
 
540
Net income
  830
Cash dividends
 
260
Income retained in business
 
$570


Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. 

$
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Transcribed Image Text:$ Save for Later Attempts: 0 of 1 used Submit Answer %24 > > > > > > > > > > > > > > >
MARTINEZ COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2020
(Indirect Method)
Net Income
$
Adjustments to reconcile net income to
$
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Transcribed Image Text:MARTINEZ COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Net Income $ Adjustments to reconcile net income to $ %24 %24 > > > > > > > >
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