Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented
ID: 2493225 • 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 $1,794 $1,107 Receivables 1,745 1,306 Inventory 1,595 1,905 Plant assets 1,908 1,700 Accumulated depreciation (1,191 ) (1,160 ) Long-term investments (held-to-maturity) 1,291 1,480 $7,142 $6,338 Accounts payable $1,216 $789 Accrued liabilities 200 246 Bonds payable 1,420 1,633 Capital stock 1,896 1,701 Retained earnings 2,410 1,969 $7,142 $6,338 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue $6,792 Cost of goods sold 4,699 Gross margin 2,093 Selling and administrative expenses 936 Income from operations 1,157 Other revenues and gains Gain on sale of investments 91 Income before tax 1,248 Income tax expense 533 Net income $715 Cash dividends 274 Income retained in business $441 Additional information: During the year, $63 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
Explanation / Answer
Answer:
Pat Metheny Company Statement of cash Flow Cash Flow from operating activities: Net income 715 Adjustment: Gain on sale of investments -91 Increase in receivables -439 Decrease in inventory 310 Dep expense 31 Increase in accounts payable 427 Decraese in accrued liabilities -46 Cash Flow from operating activities 907 Cash Flow from investing activities: Sale of investment 280 Purchase of plant assets -145 Cash Flow from investing activities 135 Cash Flow from financing activities: Dividend paid -274 Issue of common stock 132 Redemption of bonds payable -213 Cash used in financing activities -355 Cash flow from all activities 687 Opening cash 1107 closing cash 1794Related Questions
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