Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below.
PAT METHENY COMPANYCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2014 AND 2013
2014
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2013
Cash
$1,791
$1,100
Receivables
1,752
1,291
Inventory
1,591
1,918
Plant assets
1,894
1,693
Accumulated depreciation
(1,193
)
(1,176
)
Long-term investments (held-to-maturity)
1,299
1,473
$7,134
$6,299
Accounts payable
$1,201
$786
Accrued liabilities
212
245
Bonds payable
1,419
1,635
Capital stock
1,906
1,700
Retained earnings
2,396
1,933
$7,134
$6,299
PAT METHENY COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2014
Sales revenue
$6,803
Cost of goods sold
4,694
Gross margin
2,109
Selling and administrative expenses
923
Income from operations
1,186
Other revenues and gains
Gain on sale of investments
80
Income before tax
1,266
Income tax expense
534
Net income
$732
Cash dividends
269
Income retained in business
$463
Additional information:
During the year, $62 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 COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2014(Direct Method)
