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Prepare a statement of cash flows using the indirect method.

Prepare a statement of cash flows using the indirect method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E22.11 (LO 2) (SCF-Indirect Method) Condensed financial data of Pat Metheny Company for 2025 and 2024 are presented below. Pat Metheny Company Comparative Balance Sheet As of December 31, 2025 and 2024 2025 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings Sales revenue Cost of goods sold $1,800 1,750 1,600 Gross margin Selling and administrative expense Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 1,900 (1,200) 1,300 $7,150 Pat Metheny Company Income Statement For the Year Ended December 31, 2025 $1,200 200 1,400 1,900 2,450 $7,150 2024 $1,150 1,300 1,900 1,700 (1,170) 1,420 $6,300 $ 900 250 1,550 1,700 1,900 $6,300 $6,900 4,700 2,200 930 1,270 80 1,350 540 810 260 $ 550 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2025.
Transcribed Image Text:E22.11 (LO 2) (SCF-Indirect Method) Condensed financial data of Pat Metheny Company for 2025 and 2024 are presented below. Pat Metheny Company Comparative Balance Sheet As of December 31, 2025 and 2024 2025 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings Sales revenue Cost of goods sold $1,800 1,750 1,600 Gross margin Selling and administrative expense Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 1,900 (1,200) 1,300 $7,150 Pat Metheny Company Income Statement For the Year Ended December 31, 2025 $1,200 200 1,400 1,900 2,450 $7,150 2024 $1,150 1,300 1,900 1,700 (1,170) 1,420 $6,300 $ 900 250 1,550 1,700 1,900 $6,300 $6,900 4,700 2,200 930 1,270 80 1,350 540 810 260 $ 550 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2025.
nt of Cash Flows Instructions Prepare a statement of cash flows using the indirect method.
Transcribed Image Text:nt of Cash Flows Instructions Prepare a statement of cash flows using the indirect method.
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