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Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting

Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
2018 2017
Assets
Cash $ 510 $ 265
Accounts receivable 610 320
Inventory 760 415
Land 600 525
Building 700 700
Less: Accumulated depreciation (250 ) (220)
Equipment 3,150 2,930
Less: Accumulated depreciation (418 ) (380 )
Patent 1,300 1,600
$ 6,962 $ 6,155
Liabilities
Accounts payable $ 860 $ 710
Accrued expenses payable 280 235
Lease liabilityland 130 0
Shareholders' Equity
Common stock 3,650 3,500
Paid-in capitalexcess of par 550 485
Retained earnings 1,492 1,225
$ 6,962 $ 6,155

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue $ 3,101
Gain on sale of land 95 $ 3,196
Expenses
Cost of goods sold $ 1,060
Depreciation expensebuilding 30
Depreciation expenseequipment 524
Loss on sale of equipment 20
Amortization of patent 300
Operating expenses 400 2,334
Net income $ 862

Additional information from the accounting records:

  1. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.
  2. During 2018, equipment with a cost of $540,000 (90% depreciated) was sold.
  3. The statement of shareholders' equity reveals reductions of $215,000 and $380,000 for stock dividends and cash dividends, respectively.

Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

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