Question: 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
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 COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2014 AND 2013 | ||||||
| 2014 | 2013 | |||||
| Cash | $1,790 | $1,106 | ||||
| Receivables | 1,755 | 1,300 | ||||
| Inventory | 1,582 | 1,901 | ||||
| Plant assets | 1,899 | 1,706 | ||||
| Accumulated depreciation | (1,195 | ) | (1,170 | ) | ||
| Long-term investments (held-to-maturity) | 1,299 | 1,478 | ||||
| $7,130 | $6,321 | |||||
| Accounts payable | $1,217 | $796 | ||||
| Accrued liabilities | 208 | 250 | ||||
| Bonds payable | 1,416 | 1,650 | ||||
| Capital stock | 1,894 | 1,700 | ||||
| Retained earnings | 2,395 | 1,925 | ||||
| $7,130 | $6,321 | |||||
| PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 | ||
| Sales revenue | $6,825 | |
| Cost of goods sold | 4,695 | |
| Gross margin | 2,130 | |
| Selling and administrative expenses | 939 | |
| Income from operations | 1,191 | |
| Other revenues and gains | ||
| Gain on sale of investments | 83 | |
| Income before tax | 1,274 | |
| Income tax expense | 541 | |
| Net income | $733 | |
| Cash dividends | 263 | |
| Income retained in business | $470 | |
Additional information: During the year, $64 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).)
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