Question

Exercise 23-11 Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below. PAT METHENY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2014 AND 2013 2014 2013 Cash $1,805 $1,109 Receivables 1,752 1,294 Inventory 1,598 1,915 Plant assets 1,898 1,691 Accumulated depreciation (1,197 ) (1,176 ) Long-term investments (held-to-maturity) 1,308 1,464 $7,164 $6,297 Accounts payable $1,202 $782 Accrued liabilities 209 234 Bonds payable 1,406 1,649 Capital stock 1,902 1,706 Retained earnings 2,445 1,926 $7,164 $6,297 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue $6,873 Cost of goods sold 4,709 Gross margin 2,164 Selling and administrative expenses 925 Income from operations 1,239 Other revenues and gains Gain on sale of investments 83 Income before tax 1,322 Income tax expense 543 Net income $779 Cash dividends 260 Income retained in business $519 Additional information: During the year, $77 of common stock was issued in exchange for plant assets. No plant assets were sold in 2014. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1