Marx, Inc.
Statement of Stockholders' Equity
								Total
		Common		Additional		Retained		Stockholders'
		Stock		Paid-In		Earnings		Equity
Balance, December 31, 2014		$75,000		$125,000		$310,000
Additional stock issuance
Net income								565,000
(Dividends)
Balance, December 31, 2015		$75,000		$125,000		$513,000
Additional stock issuance
Net income
(Dividends)
Balance, December 31, 2016		$75,000		$125,000		$736,000

Analyzing Retained Earnings Utilizing T-accounts
		2015 Retained Earnings Analysis
				310,000		Beg 2015
DIV	PlUG		362,000	565,000	Current Year NI
				513,000		End 2015
		2016 Retained Earnings Analysis
				513,000		Beg 2016
				810,000
			587,000
				736,000		End 2016

Required:

1

Marx, Inc. paid dividends in 2015 and 2016. Analyze the financials to determine how

much was paid each year in dividends by utilizing the T-accounts tab.

2

Complete a Statement of Equity.

The current financial statements for Marx, Inc. are provided below:

Marx, Inc.

Balance Sheets

December 31, 2016, 2015 and 2014

(Thousands of Dollars)

2016

2015

2014

Current assets:

Cash

$175,000

$220,000

$155,000

Accounts receivable

61,000

150,000

100,000

Inventories

525,000

450,000

400,000

Prepaid insurance

40,000

35,000

50,000

Total current assets

801,000

855,000

705,000

Property, plant and equipment, net

950,000

703,000

750,000

Total assets

$1,751,000

$1,558,000

$1,455,000

Current liabilities:

Accounts payable

$25,000

$175,000

$160,000

Salaries payable

40,000

30,000

60,000

Unearned revenue

90,000

140,000

125,000

Total current liabilities

155,000

345,000

345,000

Long-term notes payable

660,000

500,000

600,000

Total liabilities

815,000

845,000

945,000

Stockholders' equity:

Common stock (10,000 shares issued & outstanding)

75,000

75,000

75,000

Additional paid-in capital

125,000

125,000

125,000

Retained earnings

736,000

513,000

310,000

Total stockholders' equity

936,000

713,000

510,000

Total liabilities and stockholders' equity

$1,751,000

$1,558,000

$1,455,000

Par value of Common stock

$7.50

$7.50

$7.50

Marx, Inc.

Income Statements

For the Years Ended December 31, 2016 and 2015

(Thousands of Dollars)

2016

2015

Net sales

$2,500,000

$1,800,000

Cost of goods sold

850,000

590,000

Gross profit

1,650,000

1,210,000

Selling and administrative expenses

625,000

450,000

Depreciation expense

50,000

50,000

Miscellaneous expenses

20,000

25,000

Total operating expenses

695,000

525,000

Income from operations

955,000

685,000

Interest expense

(25,000)

(20,000)

Income before income taxes

930,000

665,000

Income tax expense

120,000

100,000

Net income

$810,000

$565,000

Earnings per share

$81.00

$56.50