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

$

400

$

170

Accounts receivable

430

230

Inventory

580

370

Land

550

545

Building

900

900

Less: Accumulated depreciation

(250

)

(210)

Equipment

2,700

2,390

Less: Accumulated depreciation

(409

)

(380

)

Patent

1,400

1,500

$

6,301

$

5,515

Liabilities

Accounts payable

$

680

$

480

Accrued expenses payable

190

115

Lease liabilityland

130

0

Shareholders' Equity

Common stock

3,160

3,000

Paid-in capitalexcess of par

500

490

Retained earnings

1,641

1,430

$

6,301

$

5,515

METAGROBOLIZE INDUSTRIES

Income Statement

For the Year Ended December 31, 2018

($ in 000s)

Revenues

Sales revenue

$

2,608

Gain on sale of land

50

$

2,658

Expenses

Cost of goods sold

$

880

Depreciation expensebuilding

40

Depreciation expenseequipment

272

Loss on sale of equipment

10

Amortization of patent

100

Operating expenses

550

1,852

Net income

$

806

Additional information from the accounting records:

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

b.During 2018, equipment with a cost of $270,000 (90% depreciated) was sold.

c.The statement of shareholders' equity reveals reductions of $170,000 and $425,000 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.)