Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented

Question

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

$1,791

$1,110

1,755

1,300

1,582

1,905

1,905

1,706

(1,190

)

(1,161

)

1,300

1,465

$7,143

$6,325

$1,216

$788

211

236

1,412

1,649

1,907

1,696

2,397

1,956

$7,143

$6,325

PAT METHENY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014

$6,776

4,698

2,078

926

1,152

90

1,242

531

270

$441

Additional information:

During the year, $79 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. (Show amounts that decrease cash flow with either a - sign e.g. -25,000 or in parenthesis e.g. (25,000).)

PAT METHENY COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2014 AND 2013

2014

2013

Cash

$1,791

$1,110

Receivables

1,755

1,300

Inventory

1,582

1,905

Plant assets

1,905

1,706

Accumulated depreciation

(1,190

)

(1,161

)

Long-term investments (held-to-maturity)

1,300

1,465

$7,143

$6,325

Accounts payable

$1,216

$788

Accrued liabilities

211

236

Bonds payable

1,412

1,649

Capital stock

1,907

1,696

Retained earnings

2,397

1,956

$7,143

$6,325

Explanation / Answer

Working Notes:

Particulars $ $ Cash flow from operating activities Cash Collected from Customers 6321 Cash paid to suppliers and employees (3918+951) -4869 Cash generated from operations 1452 Less: Income tax paid -531 Net cash Flow from Operation 921 Cash flow from investing activities Purchase of plant -120 Sale of investments 255 Purchase of long term investments Net cash Flow from Investing activities 135 Cash flow from Financing activities: Issue of common stock 132 Redemption of bond (1649-1412) -237 Payment of interest Payment of dividend -270 Net cash flow from financing activities -375 Net increase in cash and cash equivalents 681 Add: cash and cash equivalents as on Dec, 31 2013 1110 Cas and cash equivalents as on Dec, 31 2014 1791

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