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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