Condensed financial data of Martinez Company for 2020 and 2019 are presented below.MARTINEZ COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 2020 2019Cash $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 COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020Sales revenue $6,880Cost of goods sold 4,650Gross margin 2,230Selling and administrative expenses 940Income from operations 1,290Other revenues and gains Gain on sale of investments 80Income before tax 1,370Income tax expense 540Net income 830Cash dividends 260Income retained in business $570Additional 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. $Save for LaterAttempts: 0 of 1 usedSubmit Answer%24>>>>>>>>>>>>>>> MARTINEZ COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2020(Indirect Method)Net Income$Adjustments to reconcile net income to$%24%24>>>>>>>>

The cash flow statement is an essential part of the financial statements of the organization. It is…

Answered: Condensed financial data of Martinez…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 33CE

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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.

$
Save for Later
Attempts: 0 of 1 used
Submit Answer
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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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