The comparative balance sheet of Martinez Inc. for December 31, 2016 and 2015 is as follows | eBooks | Education

The comparative balance sheet of Martinez Inc. for December 31, 2016 and 2015 is as follows

The comparative balance sheet of Martinez Inc. for December 31, 2016 and 2015 is as follows PLDZ-2893
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The comparative balance sheet of Martinez Inc. for December 31, 2016 and 2015 is as follows:

1

 

   

2

Assets

 

 

3

Cash

$661,920.00

$683,100.00

4

Accounts receivable (net)

992,640.00

914,400.00

5

Inventories

1,394,400.00

1,363,800.00

6

Investments

 

432,000.00

7

Land

960,000.00

 

8

Equipment

1,224,000.00

984,000.00

9

Accumulated depreciation-equipment

(481,500.00)

(368,400.00)

10

Total assets

$4,751,460.00

$4,008,900.00

11

Liabilities and Stockholders’ Equity

 

 

12

Accounts payable (merchandise creditors)

$1,080,000.00

$966,600.00

13

Accrued expenses payable (operating expenses)

67,800.00

79,200.00

14

Dividends payable

100,800.00

91,200.00

15

Common stock, $5 par

130,000.00

30,000.00

16

Paid-in capital: Excess of issue price over par—common stock

950,000.00

450,000.00

17

Retained earnings

2,422,860.00

2,391,900.00

18

Total liabilities and stockholders’ equity

$4,751,460.00

$4,008,900.00

The income statement for the year ended December 31, 2016, is as follows:

1

Sales

 

$4,512,000.00

2

Cost of merchandise sold

 

2,352,000.00

3

Gross profit

 

$2,160,000.00

4

Operating expenses:

 

 

5

Depreciation expense

$113,100.00

 

6

Other operating expenses

1,344,840.00

 

7

Total operating expenses

 

1,457,940.00

8

Operating income

 

$702,060.00

9

Other income:

 

 

10

 

   

11

Income before income tax

 

$858,060.00

12

Income tax expense

 

299,100.00

13

Net income

 

$558,960.00

 

 

 

 

 

 

 

Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:

 

Equipment and land were acquired for cash.

 

There were no disposals of equipment during the year.

 

The investments were sold for $588,000 cash.

 

The common stock was issued for cash.

 

There was a $528,000 debit to Retained Earnings for cash dividends declared.

 

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign only to indicate the net cash outflows for each section. “Deduct”, “Less” or colons (:) will automatically appear if required.

Accounts Description: 

 

 

 

 

 

The comparative balance sheet of Martinez Inc. for December 31, 2016 and 2015 is as follows: 1 2 Assets 3 Cash $661,920.00 $683,100.00 4 Accounts receivable (net)
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