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Exercise 23-11 Condensed financial data of Pat Metheny Company for 2014 and 2013

ID: 2416343 • Letter: E

Question

Exercise 23-11

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

$1,791

$1,091

1,748

1,298

1,595

1,904

1,894

1,693

(1,198

(1,166

1,306

1,475

$7,136

$6,295

$1,202

$787

205

238

1,413

1,637

1,906

1,709

2,410

1,924

$7,136

$6,295

PAT METHENY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2014

$6,835

4,695

2,140

925

1,215

81

1,296

540

270

$486


Additional information:

During the year, $80 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).)

PAT METHENY COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2014
(Indirect Method)

PAT METHENY COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2014 AND 2013

2014

2013

Cash

$1,791

$1,091

Receivables

1,748

1,298

Inventory

1,595

1,904

Plant assets

1,894

1,693

Accumulated depreciation

(1,198

)

(1,166

) Long-term investments (held-to-maturity)

1,306

1,475

$7,136

$6,295

Accounts payable

$1,202

$787

Accrued liabilities

205

238

Bonds payable

1,413

1,637

Capital stock

1,906

1,709

Retained earnings

2,410

1,924

$7,136

$6,295

Explanation / Answer

investing activities

financing activities

operating activities net income 756 depreciation 32 increase in receivable -450 decrease in inventory 309 increase in accounts payable 415 decrease in accrued liabilities -33 decrease in bonds payable -224

investing activities

capex -201 decrease in investments 169

financing activities

increase in stock 197 dividend -270 change in cash 700 opening cash 1091 ending cash 1791