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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
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
|
||||
|
(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
|
||||
|
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
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