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 $1,790 $1,140 Receivables 1.750 1,290 Inventory 1,590 1,900 Plant assets 1.920 1,740 Accumulated depreciation (1,170) (1,150) Long-term investments (held-to-maturity) 1.320 1,420 $7,200 $6,340 Accounts payable $1,220 $880 Accrued liabilities 200 250 Bonds payable 1,400 1,530 Common stock 1,940 1,700 Retained earnings 2,440 1,980 $7,200 $6,340 MARTINEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses $6,770 4,660 2,110 930 1,180 Income from operations Other revenues and gains Gain on sale of investments 80 Income before tax 1,260 Income tax expense 540 Net income 720 Cash dividends 260 Income retained in business $460 MARTINEZ COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Gain on Sale of Investments Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Increase in Accrued Liabilities -69 > > > > > 69 20 -80 -460 310 340 -50 720 800 Net Income > > > > > > > > > > > > 170 -260 -130 ++ SA $ -220 650 1140 1790