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Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are glven below for Metagrobolize Industries. Additional information from the accounting
Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are glven 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 S 500 S 305 Accounts receivable 590 310 Inventory 740 410 Land 750 735 Building 700 700 Less: Accumulated depreciation Equipment Less: Accumulated depreciation (200) 3,100 (397) 1,200 (185) 2,870 (360) 1,450 $6,235 Patent $6,983 Liabilitiies Accounts payable Accrued expenses payable Lease liability-land Shareholders Equity 840 S 640 270 230 130 3,700 550 3,500 Common stock Paid-in capital-excess of par Retained earnings 540 1,493 1,325 $6,983 $6,235 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue $2,894 90 $2,984 Gain on sale of land Expenses Cost of goods sold Depreciation expense-building Depreciation expense-equipment Loss on sale of equipment Amortization of patent $1,040 15 496 20 250 400 2,221 Operating expenses 763 Net income Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018. b. During 2018, equipment with a cost of $510,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2018 ($ in 000s) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods For operating expenses Cash flows from investing activities: Purchase of equipment Sale of land Sale of equipment Cash flows from financing activities: Payment on lease liability Payment of cash dividends $ Noncash investing and financing activities
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