Condensed financial data of Pat Metheny Company for 2014 and 2013 are presented below:
Pat Metheny
Comparative Balance Sheet
As of December 31, 2014 and 2013
2014 2013
Cash 1,800 1,100
Receivables 1,750 1,300
Inventory 1,600 1,900
Plant assets 1,900 1,700
Accumulated depreciation (1,200) (1,170)
Long-term investments (Held-to-maturity) 1,300 1,470
$7,150 $6,300
Accounts payable 1,200 800
Accrued liabilities 200 250
Bonds payable 1,400 1,650
Capital stock 1,900 1,700
Retained Earnings 2,450 1,900
$7,150 $6,300
Pat Metheny
Income Statement
For the year ended December 31, 2014
Sales 6,900
Cost of goods sold 4,700
Gross Margin 2,200
Selling & admin Expenses 930
Income from operations 1,270
Gain on sale of investment 80
Income before tax 1,350
Income tax expense 540
Net income 810
Cash dividends 260
Income retained in business 550
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2014.
Instructions:
Prepare a statement of cash flows using the indirect method.