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	$1,802	$1,102
Receivables	1,758	1,291
Inventory	1,582	1,913
Plant assets	1,897	1,691
Accumulated depreciation	(1,200 )	(1,180 )
Long-term investments (held-to-maturity)	1,308	1,470
	$7,147	$6,287
Accounts payable	$1,210	$799
Accrued liabilities	215	243
Bonds payable	1,491	1,630
Capital stock	1,900	1,703
Retained earnings	2,450	1,900
	$7,150	$6,300

PAT METHENY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
Sales revenue	$6,900
Cost of goods sold	4,700
Gross margin	2,200
Selling and administrative expenses	930
Income from operations	1,270
Other revenues and gains
Gain on sale of investments	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 direct method.

Answer rating: 100% (QA)

Statement of Cash Flows For the year ended December 31 2014 Amount Cash flow from o... View the full answer