Problem:
Condensed financial data of Pat Metheny Company for 2008 and 2007:
Comparative Balance Sheet 2008 2007
cash 1,800. 1,150.
receivables 1,750. 1,300.
inventory 1,600. 1,900.
plant assets 1,900. 1,700.
Accum. deprec. (1,200) (1,170)
Long term invest. held to maturity 1,300. 1,420.
accounts payable 1,200 900.
accrued liabilities 200. 250.
bonds payable 1400. 1550
captial stock 1900 1700.
retained earnings 2450. 1900.
Sales 6900
cost of goods sold 4700
Selling and admin. expense 930
Gain on sale of investments 80
Income before tax 1350
income tax expense 540
Cash dividends 260. NEED TO FIGURE INTO THE CASHFLOWS
income retained in business 550. During the year $70. of common stock
was issued in exchange for plant assets.
No plant assets were sold in 2008.