Exercise 23-12 Condensed financial data of Pat Metheny Company for 2017 and 2016 are presented below. PAT METHENY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 $1,800 $1,150 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 1,750 1,300 1,600 1,900 (1,200) (1,170) 1,900 1,700 1,300 1,420 --$6,300 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,200 $900 250 1,400 1,550 1,900 1,700 2,450 1,900 $7,150 $6,300 200 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains $6,900 4,700 2,200 930 1,270 80 1,350 540 Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 260 $550 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017