Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting
Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also. |
METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2013 and 2012 ($ in 000s) | ||||
2013 | 2012 | |||
Assets | ||||
Cash | $ | 520 | $ | 305 |
Accounts receivable | 590 | 310 | ||
Inventory | 740 | 410 | ||
Land | 750 | 735 | ||
Building | 700 | 700 | ||
Less: Accumulated depreciation | (200) | (185) | ||
Equipment | 3,100 | 2,870 | ||
Less: Accumulated depreciation | (397) | (360) | ||
Patent | 1,200 | 1,450 | ||
$ | 7,003 | $ | 6,235 | |
Liabilities | ||||
Accounts payable | $ | 840 | $ | 640 |
Accrued expenses payable | 270 | 230 | ||
Lease liabilityland | 150 | 0 | ||
Shareholders' Equity | ||||
Common stock | 3,700 | 3,500 | ||
Paid-in capitalexcess of par | 550 | 540 | ||
Retained earnings | 1,493 | 1,325 | ||
$ | 7,003 | $ | 6,235 | |
METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2013 ($ in 000s) | ||||
Revenues | ||||
Sales revenue | $ | 2,894 | ||
Gain on sale of land | 90 | $ | 2,984 | |
Expenses | ||||
Cost of goods sold | $ | 1,040 | ||
Depreciation expensebuilding | 15 | |||
Depreciation expenseequipment | 496 | |||
Loss on sale of equipment | 20 | |||
Amortization of patent | 250 | |||
Operating expenses | $ | 400 | 2,221 | |
Net income | $ | 763 |
Additional information from the accounting records: | |
a. | During 2013, equipment with a cost of $510,000 (90% depreciated) was sold. |
b. | The statement of shareholders equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively. |
c. | The land leased during the year is classified as an asset by the company |
Required: |
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started