PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,900 Cost of goods sold 4,700 Gross margin 2,200 Selling and administrative expense 930 Income from operations 1,270 Other revenues and gains Gain on sale of investments Income before tax Income tax expense 80 1,350 540 810 260 $ 550 Net income Cash dividends Income retained in business Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Instructions Prepare a statement of cash flows using the indirect method.
PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,900 Cost of goods sold 4,700 Gross margin 2,200 Selling and administrative expense 930 Income from operations 1,270 Other revenues and gains Gain on sale of investments Income before tax Income tax expense 80 1,350 540 810 260 $ 550 Net income Cash dividends Income retained in business Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. Instructions Prepare a statement of cash flows using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PAT METHENY COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue
$6,900
Cost of goods sold
4,700
Gross margin
2,200
Selling and administrative expense
930
Income from operations
1,270
Other revenues and gains
Gain on sale of investments
Income before tax
Income tax expense
Net income
Cash dividends
80
1,350
540
810
260
$ 550
Income retained in business
Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.
Instructions
Prepare a statement of cash flows using the indirect method.
Transcribed Image Text:(SCF-Indirect Method)
(LO 2) Condensed financial data of Pat Metheny Company for 2017 and 2016 are presented below.
PAT METHENY COMPANY
Cash
Receivables
Inventory
Plant assets
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
2017
$1,800
1,750
1,600
Accumulated depreciation
Long-term investments (held-to-maturity)
Accounts payable
Accrued liabilities
Bonds payable
Common stock
Retained earnings
2016
$1,150
1,300
1,900
1,700
(1,170)
1,420
$6,300
1,900
(1,200)
1,300
$7,150
$1,200 $ 900
200
250
1,400
1,900
2,450
1,900
$7,150 $6,300
1,550
1,700
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