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)

Assets 2018 2017

Cash $570 $400

Accounts receivable 730 380

Inventory 880 445

Land 750 685

Building 900 900

Less: Accumulated depreciation (250) (235)

Equipment 3,450 3,290

Less: Accumulated depreciation (364) (320)

Patent 1,900 2,000

Total $8,566 $7,545

Liabilities

Accounts payable $ 980 $680

Accrued expenses payable 340 265

Lease liabilityland 130 0

Shareholders' Equity

Common stock 3,700 3,500

Paid-in capitalexcess of par 800 755

Retained earnings 2,616 2,345

Total $8,566 $7,545

METAGROBOLIZE INDUSTRIES

Income Statement

For the Year Ended December 31, 2018

($ in 000s)

Revenues

Sales revenue $3,143

Gain on sale of land 85 $3,228

Expenses

Cost of goods sold $1,180

Depreciation expensebuilding 15

Depreciation expenseequipment 692

Loss on sale of equipment 25

Amortization of patent 100

Operating expenses 350 2,362

Net income $866

Additional information from the accounting records:

1. Annual payments of $20,000on the finance lease liability are paid each January 1, beginning in 2018.
2. During 2018, equipment with a cost of $720,000 (90% depreciated) was sold.
3. The statement of shareholders' equity reveals reductions of $245,000 and $350,000 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.)