Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below: Pat Metheny Comparative Balance Sheet As of December 31, 2014 and 2013 2014 2013 Cash 1,800 1,100 Receivables 1,750 1,300 Inventory 1,600 1,900 Plant assets 1,900 1,700 Accumulated depreciation (1,200) (1,170) Long-term investments (Held-to-maturity) 1,300 1,470 $7,150 $6,300 Accounts payable 1,200 800 Accrued liabilities 200 250 Bonds payable 1,400 1,650 Capital stock 1,900 1,700 Retained Earnings 2,450 1,900 $7,150 $6,300 Pat Metheny Income Statement For the year ended December 31, 2014 Sales 6,900 Cost of goods sold 4,700 Gross Margin 2,200 Selling & admin Expenses 930 Income from operations 1,270 Gain on sale of investment 80 Income before tax 1,350 Income tax expense 540 Net income 810 Cash dividends 260 Income retained in business 550 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2014. Instructions: Prepare a statement of cash flows using the indirect method.
Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below:
Pat Metheny
Comparative Balance Sheet
As of December 31, 2014 and 2013
2014 2013
Cash 1,800 1,100
Receivables 1,750 1,300
Inventory 1,600 1,900
Plant assets 1,900 1,700
Accumulated
Long-term investments (Held-to-maturity) 1,300 1,470
$7,150 $6,300
Accounts payable 1,200 800
Accrued liabilities 200 250
Bonds payable 1,400 1,650
Capital stock 1,900 1,700
Retained Earnings 2,450 1,900
$7,150 $6,300
Pat Metheny
Income Statement
For the year ended December 31, 2014
Sales 6,900
Cost of goods sold 4,700
Gross Margin 2,200
Selling & admin Expenses 930
Income from operations 1,270
Gain on sale of investment 80
Income before tax 1,350
Income tax expense 540
Net income 810
Cash dividends 260
Income retained in business 550
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2014.
Instructions:
Prepare a statement of cash flows using the indirect method.
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