direct method (E23-12)

Pat Metheny Company Comparative Balance Sheet As of December 31, 2020 and 2019 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 2019 $1,150 1,300 1,900 1,700 (1,170) 1,420 $6,300 2020 $1,800 1,750 1,600 1,900 (1,200) 1,300 $7,150 $1,200 200 1,400 1,900 2,450 $7,150 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $ 900 250 1,550 1,700 1,900 $6,300 Pat Metheny Company Income Statement For the Year Ended December 31, 2020 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 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 2020, Instructions Prepare a statement of cash flows using the indirect method. E23.12 (L02) (SCP-Direct Method) Data for Pat Metheny Company are presented in B23.11. Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)