ADMS 4510 Lecture Notes - Income Statement, Arbitrage, Retained Earnings
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Exercise 23-11
Condensed financial data of Pat Metheny Company for 2014 and2013 are presented below.
PAT METHENY COMPANY | ||||||
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 |
PAT METHENY COMPANY | ||
Sales revenue | $6,835 | |
Cost of goods sold | 4,695 | |
Gross margin | 2,140 | |
Selling and administrative expenses | 925 | |
Income from operations | 1,215 | |
Other revenues and gains | ||
Gain on sale of investments | 81 | |
Income before tax | 1,296 | |
Income tax expense | 540 | |
Net income | $756 | |
Cash dividends | 270 | |
Income retained in business | $486 |
Additional information:
During the year, $80 of common stock was issued in exchange forplant 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 |