Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented
ID: 2480268 • Letter: C
Question
Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below.
Exercise 23-11
PAT METHENY COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2014 AND 2013
2014
2013
$1,793
$1,105
1,756
1,306
1,584
1,919
1,894
1,703
(1,204
)
(1,169
)
1,300
1,466
$7,123
$6,330
$1,204
$785
211
248
1,408
1,648
1,898
1,697
2,402
1,952
$7,123
$6,330
PAT METHENY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,810
4,697
2,113
934
1,179
83
1,262
548
264
$450
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Exercise 23-11
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$1,793
$1,105
Receivables1,756
1,306
Inventory1,584
1,919
Plant assets1,894
1,703
Accumulated depreciation(1,204
)
(1,169
)
Long-term investments (held-to-maturity)1,300
1,466
$7,123
$6,330
Accounts payable$1,204
$785
Accrued liabilities211
248
Bonds payable1,408
1,648
Capital stock1,898
1,697
Retained earnings2,402
1,952
$7,123
$6,330
PAT METHENY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014
$6,810
Cost of goods sold4,697
Gross margin2,113
Selling and administrative expenses934
Income from operations1,179
Other revenues and gains Gain on sale of investments83
Income before tax1,262
Income tax expense548
Net income $714 Cash dividends264
Income retained in business$450
Additional information:
During the year, $78 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).)
Explanation / Answer
net income $ 714.00 adjustments for reconciling net income with operating cash flow depreciation (1204-1169) $ 35.00 Decrease in inventory ( 1919-1584) $ 335.00 Increase in accounts payable (1204-785) $ 419.00 Increase in accounts receivable (1756-1306) $ -450.00 Decrease in accrued liabilities (248-211) $ -37.00 Gain on sale of investments $ -83.00 Net cash provided by operating activites $ 933.00 Investing activites sale of investments (1466-1300 + gain $83) $ 249.00 Purcahse of equipment (1894-1703-78) $ -113.00 Net cash provided by investing activites $ 136.00 Financing activites Retirement of bond (1648-1408) $ -240.00 Payment of dividend $ -264.00 Issue of shares (1898-1697-78) $ 123.00 Net cash used in financing activites $ -381.00 Net increase in cash $ 688.00 Beginning balance $ 1,105.00 Ending balance $ 1,793.00
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