Question
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.
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 $540,000 (90% depreciated) was sold.
- The statement of shareholders' equity reveals reductions of $215,000 and $380,000 for stock dividends and cash dividends, respectively.
Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ($ in 2005) 2018 2017 Assets Cash Accounts receivable Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent $ 510 610 760 600 700 (250) 3,150 (418) 1,300 $ 6,962 $ 265 320 415 525 700 (220) 2,930 (380) 1,600 $ 6,155 $ 860 $ 280 710 235 130 Liabilities Accounts payable Accrued expenses payable Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 3,650 550 1,492 $ 6,962 3,500 485 1, 225 $ 6,155 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 200s) Revenues Sales revenue $3,101 Gain on sale of land 95 $3,196 Expenses Cost of goods sold $1,060 Depreciation expense-building 30 Depreciation expense-equipment 524 Loss on sale of equipment 20 Amortization of patent 300 Operating expenses 400 2,334 Net income $ 862 ME TAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2018 ($ in 000s) Cash inflows: Cash outflowsStep by Step Solution
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