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		$1,808			$1,110
Receivables		1,743			1,293
Inventory		1,592			1,909
Plant assets		1,901			1,699
Accumulated depreciation		(1,198	)		(1,175	)
Long-term investments (held-to-maturity)		1,307			1,474
		$7,153			$6,310
Accounts payable		$1,207			$787
Accrued liabilities		216			245
Bonds payable		1,406			1,632
Capital stock		1,897			1,707
Retained earnings		2,427			1,939
		$7,153			$6,310

PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014
Sales revenue		$6,857
Cost of goods sold		4,708
Gross margin		2,149
Selling and administrative expenses		935
Income from operations		1,214
Other revenues and gains
Gain on sale of investments		86
Income before tax		1,300
Income tax expense		532
Net income		$768
Cash dividends		280
Income retained in business		$488

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 direct method.

Answer rating: 100% (QA)

sales 6857 gain on sale of investments 86 decreae in inventories 317 increase in ... View the full answer