math

Given is the Income Statement for the year ended December 31, 2015, Statement of Retained Earnings for the year ended December 31, 2015 and Comparative Balance Sheets for 2014 and 2015 of Maris Corporation:
  
Maris Corporation
Income Statement
Year Ended December 31, 2015
  Sales
$3,300,000  
  Cost of goods sold
1,950,000  
  

     Gross profits
1,350,000  
  Selling and administrative expense
650,000  
  Amortization expense
230,000  
  

     Operating income
470,000  
  Interest expense
80,000  
  

     Earnings before taxes
390,000  
  Taxes
140,000  
  

     Earnings after taxes
250,000  
 


  Preferred stock dividends
10,000  
  

  Earnings available to common shareholders
$240,000  
 


  Shares outstanding
150,000  
  Earnings per share
$1.60  

  
 
Statement of Retained Earnings
For the Year Ended December 31, 2015
  Retained earnings, balance, January 1, 2015
$800,000  
     Add: Earnings available to common shareholders, 2015
240,000  
     Deduct: Cash dividends declared and paid in 2015
140,000  
 

  Retained earnings, balance, December 31, 2015
$900,000  
 



   
 
Comparative Balance Sheets
For 2014 and 2015
 
December 31, 2015
December 31, 2014
  Assets
 
 
 
 
  Current assets:
 
 
 
 
     Cash
 
$120,000  
 
$100,000  
     Accounts receivable (net)
 
510,000  
 
500,000  
     Inventory
 
640,000  
 
610,000  
     Prepaid expenses
 
30,000  
 
60,000  
  
 

 

       Total current assets
 
 1,300,000  
 
1,270,000  
     Investments (long-term securities)
 
80,000  
 
90,000  
     Plant and equipment
2,600,000  
 
2,000,000  
 
     Less: Accumulated amortization
1,230,000  
 
1,000,000  
 
  

 

 
     Net plant and equipment
 
1,370,000  
 
1,000,000  
  
 

 

  Total assets
 
$2,750,000  
 
$2,360,000  
  
 


 


  Liabilities and Shareholders’ Equity
 
 
 
 
  Current liabilities:
 
 
 
 
     Accounts payable
 
$550,000  
 
$300,000  
     Notes payable
 
500,000  
 
500,000  
     Accrued expenses
 
50,000  
 
70,000  
  
 

 

       Total current liabilities
 
1,100,000  
 
870,000  
  Long-term liabilities:
 
 
 
 
     Bonds payable, 2021
 
160,000  
 
100,000  
  
 

 

       Total liabilities
 
1,260,000  
 
970,000  
  Shareholders’ equity:
 
 
 
 
     Preferred stock
 
90,000  
 
90,000  
     Common stock
 
500,000  
 
500,000  
     Retained earnings
 
900,000  
 
800,000  
  
 

 

       Total shareholders’ equity
 
1,490,000  
 
1,390,000  
  
 

 

  Total liabilities and shareholders’ equity
 
$2,750,000  
 
$2,360,000  
  
 


 



  
 
Has the buildup in plant and equipment been financed in a satisfactory manner? Briefly discuss

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