Question
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
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 Cash $1,810 Receivables 1.740 Inventory 1.630 Plant assets 1.910 Accumulated depreciation (1.220 ) Long-term investments (held-to-maturity) 1,280 $7,150 2019 $1,160 1,310 1.890 1,720 (1.180 ) 1,420 $6,320 Accounts payable Accrued liabilities Bonds payable Common stock Ptained earnings $1.220 190 1,420 1,940 2,380 $7.150 $920 240 1,580 1,730 1,850 $6.320 $7,150 $6,320 MARTINEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,960 Cost of goods sold 4,780 Gross margin 2,180 Selling and administrative expenses 920 Income from operations 1,260 Other revenues and gains Gain on sale of investments Income before tax 80 1.340 Income tax expense 550 Net income 790 Cash dividends 260 Income retained in business $530 Otional information: DEC 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 direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MARTINEZ COMPANY Statement of Cash Flows (Direct Method)
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