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
Cash	$1,800	$1,105
Receivables	1,743	1,304
Inventory	1,596	1,911
Plant assets	1,899	1,702
Accumulated depreciation	(1,198	)	(1,179	)
Long-term investments (held-to-maturity)	1,301		1,462
$7,141		$6,305
Accounts payable	$1,218	$794
Accrued liabilities	202	233
Bonds payable	1,415	1,637
Capital stock	1,905	1,694
Retained earnings	2,401		1,947
$7,141		$6,305

PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014
Sales revenue	$6,783
Cost of goods sold	4,695
Gross margin	2,088
Selling and administrative expenses	921
Income from operations	1,167
Other revenues and gains
Gain on sale of investments	89
Income before tax	1,256
Income tax expense	540
Net income	$716
Cash dividends	262
Income retained in business	$454

Additional information:

During the year, $73of 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).)