Can you please help me answer the following question?? Condensed financial data
ID: 2470768 • Letter: C
Question
Can you please help me answer the following question??
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 Cash Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) 2014 $1,806 1,759 1,585 1,902 2013 $1,097 1,297 1,914 1,693 (1,202) (1,179) 1,309 1,470 $7.159 $6.292 $6,292 0 Accounts payable Accrued liabilities Bonds payable Capital stock Retained earnings $1,204 205 1,412 1,896 2,442 $7,159 $795 239 1,633 1,710 1,915 $6,292 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains $6,865 4,702 2,163 927 1,236 Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 93 1,329 534 $795 268 $527Explanation / Answer
Net profit $ 795.00 Adjustments to reconcile net income to Opearating cash flow: Add: Depreciation (1202-1179) $ 23.00 Decrease in inventory (1914-1585) $ 329.00 Increase in accounts payable (1204-795) $ 409.00 $ 761.00 $ 1,556.00 Less: increase in recivables (1759-1297) $ -462.00 Decrease in accounts payable (239-205) $ -34.00 Gain on sale of investments $ -93.00 $ -589.00 Net cash flow from operating activites $ 967.00 Investing activites: Sale of long term investments (1470-1309+93) $ 254.00 Purchase of plant assets (1902-1693 -61) $ -148.00 Net cash flow from investing activites $ 106.00 Financing Activites Issue of common stock (1896-1710-61) $ 125.00 Repayment of bonds (1633-1412) $ -221.00 Payment of dividend $ -268.00 Cash flow from financing activites $ -364.00 Net cash provided by the business $ 709.00 Cash balance as on Dec 31, 2013 $ 1,097.00 Cash balance as on Dec 31, 2014 $ 1,806.00