Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented
ID: 2482784 • Letter: C
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
Cash $1,793 $1,091
Receivables 1,754 1,293
Inventory 1,598 1,906
Plant assets 1,907 1,691
Accumulated depreciation (1,197 ) (1,169 )
Long-term investments (held-to-maturity) 1,306 1,467
Total: $7,161 $6,279
Accounts payable $1,207 $794
Accrued liabilities 218 244
Bonds payable 1,407 1,635
Capital stock 1,902 1,704
Retained earnings 2,427 1,902
Totals: $7,161 $6,279
PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014
Sales revenue $6,871
Cost of goods sold 4,696
Gross margin 2,175
Selling and administrative expenses 934
Income from operations 1,241
Other revenues and gains:
Gain on sale of investments 85
Income before tax 1,326
Income tax expense 536
Net income $790
Cash dividends 265
Income retained in business $525
Additional information: During the year, $71 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
CASH FLOW STATEMENT FOR THE YEAR 2014 Income Before tax $1,326.00 Add: Depreciation $28.00 Less: Profit on Investment -$85.00 Operating Profit $1,269.00 Adjustment for WC Current Assets -$153.00 Account Payble $413.00 Accrued Liabilities -$26.00 Cash from operation $1,503.00 Less: Tax paid -$536.00 Net Cashflow from operating Activities $967.00 Purchase of Plant -$145.00 Sale of Investment $246.00 Net Cash flow from Investing Activities $101.00 Issue of Common Stock $127.00 Repayment of Bond -228 Dividend Paid -265 Net Cash flow from Financing Activities -$366.00 Net Cash Flow $702.00 Cash at begning of year $1,091.00 Cash balance at end of the year $1,793.00
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