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	480	250
accounts receivable	550	290
inventory	700	400
land	700	650
building	800	800
less accumulated depreciation	(250)	(215)
equipment	3000	2750
less accumulated depreciation	(355)	(320)
patent	1000	1150
	6625	5755
Liabilities
accounts payable	800	550
accrued expense payable	250	220
lease liability-land	130	0
shareholders equity
common stock	2660	2500
paid-in capital- excessof par	600	560
retained earnings	2185	1925
	6625	5755

METAGROBOLIZE INDUSTRIES

Income Statement For the Year Ended December 31, 2018 ($ in 000s)

Revenues
sales revenue	3020
gain on sales of land	80
		3100
cost of goods sold	1000
depreciation expense-building	35
depreciaiton expense-equipment	440
loss on sale of equipment	20
amortization of patent	150
operating expense	600
		2245
net income		855

Additional information from the accounting records:

Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.

During 2018, equipment with a cost of $450,000 (90% depreciated) was sold.

The statement of shareholders' equity reveals reductions of $200,000 and $395,000 for stock dividends and cash dividends, respectively.

Required:

1) 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.)