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(a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Prepare the condensed balance sheet for Martinez Inc. as it would
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Prepare the condensed balance sheet for Martinez Inc. as it would appear at December 31, 2017. (List current assets in the order of Liquidity.)
Question 4 Martinez Inc., had the following condensed balance sheet at the end of operations for 2016. MARTINEZ INC. BALANCE SHEET DECEMBER 31, 2016 Cash $8,500 Current liabilities $14,800 Current assets other than cash 29,000 Long-term notes payable 25,800 Equity inxesments 20,200 Bonds payable 25,000 Plant assets (net) 67,400 Common stock 75,000 Land 40,100 Retained earnings 24,600 $165,200 $165,200 During 2017, the following occurred. 1. A tract of land was purchased for $9,000. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,100 in common stock was issued at par. 4. Dividends totaling $9,400 were paid to stockholders. 5. Net income was $30,500 after allowing depreciation of S13,400. 6. Land was purchased through the issuance of S22,500 in bonds. 7. Martinez Inc. sold part of its investment portfolio for $12,900. This transaction resulted in a gain of S2,000 for the company. No unrealized gains or losses were recorded on these investments in 2017. 8. Both current assets (other than cash) and current liabilities remained at the same amountStep by Step Solution
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