Condensed financial data of Pat Metheny Company for 2020 and 2019 are presented below.

? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ?Pat Metheny Company? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ?Income Statement? ? ? ? ? ? ? ? ? ? ?For the Year Ended December 31, 2020Sales revenue.......................................................................................$6,900Cost of goods sold.................................................................................4,700Gross margin..........................................................................................2,200Selling and administrative expense.......................................................930Income from operations.......................................................................1,270Other revenues and gainsGain on sale of investments......................................................................80Income before tax..................................................................................1,350Income tax expense..................................................................................540Net income.................................................................................................810Cash dividends..........................................................................................260Income retained in business................................................................$ 550

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Instructions

Prepare a statement of cash flows using the indirect method.

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Pat Metheny Company Comparative Balance Sheet As of December 31, 2020 and 2019 2020 2019 Cash $1,800 $1,150 Receivables 1,300 1,750 1,600 Inventory 1,900 Plant assets 1,900 1,700 Accumulated depreciation Long-term investments (held-to-maturity) (1,200) (1,170) 1,300 1,420 $7,150 $6,300 $ 900 Accounts payable $1,200 Accrued liabilities 200 250 Bonds payable 1,400 1,550 Common stock 1,900 1,700 Retained earnings 2,450 1,900 $7,150 $6,300