CHAPTER 2 Financial Statements and Analysis 93Note: Industry historical ratios appear at the top of the following page.
Martin Manufacturing Company
Balance SheetsDecember 31
Assets 2003 2002Current assets
Cash $ 25,000 $ 24,100
Accounts receivable 805,556 763,900Inventories (^7) (^0) (^0) , (^6) (^2) (^5) (^7) (^6) (^3) , (^4) (^4) (^5)
Total current assets $ (^1) , (^5) (^3) (^1) , (^1) (^8) (^1) $ (^1) , (^5) (^5) (^1) , (^4) (^4) (^5)
Gross fixed assets (at cost) $2,093,819 $1,691,707
Less: Accumulated depreciation (^5) (^0) (^0) , (^0) (^0) (^0) (^3) (^4) (^8) , (^0) (^0) (^0)
Net fixed assets $ (^1) , (^5) (^9) (^3) , (^8) (^1) (^9) $ (^1) , (^3) (^4) (^3) , (^7) (^0) (^7)
Total assets $
3
,
1
2
5
,
0
0
0
$
2
,
8
9
5
,
1
5
2
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 230,000 $ 400,500
Notes payable 311,000 370,000
Accruals (^7) (^5) , (^0) (^0) (^0) (^1) (^0) (^0) , (^9) (^0) (^2)
Total current liabilities $ 616,000 $ 871,402
Long-term debt $ (^1) , (^1) (^6) (^5) , (^2) (^5) (^0) $ (^7) (^0) (^0) , (^0) (^0) (^0)
Total liabilities $ (^1) , (^7) (^8) (^1) , (^2) (^5) (^0) $ (^1) , (^5) (^7) (^1) , (^4) (^0) (^2)
Stockholders’ equity
Preferred stock (2,500 shares, $1.20 dividend) $ 50,000 $ 50,000
Common stock (100,000 shares at $4 par)a 400,000 400,000
Paid-in capital in excess of par value 593,750 593,750
Retained earnings (^3) (^0) (^0) , (^0) (^0) (^0) (^2) (^8) (^0) , (^0) (^0) (^0)
Total stockholders’ equity $ (^1) , (^3) (^4) (^3) , (^7) (^5) (^0) $ (^1) , (^3) (^2) (^3) , (^7) (^5) (^0)
Total liabilities and stockholders’ equity $
3
,
1
2
5
,
0
0
0
$
2
,
8
9
5
,
1
5
2
aThe firm’s 100,000 outstanding shares of common stock closed 2003 at a price of $11.38
per share.