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 00s) 2018 2017 Assets Cash $ 400 $ 205 Accounts receivable 390 210 Inventory 540 360 Land 550 515 Building 900 900 Less: Accumulated depreciation (300) (270) Equipment 2,600 2,270 Less: Accumulated depreciation (367) (340) Patent 1,200 1,450 $5,913 $5,300 Liabilities Accounts payable $ 640 $ 390 Accrued expenses payable 130 Lease liability-land 130 @ Shareholders' Equity Common stock 3,140 3,000 Paid-in capital-excess of par 750 730 Retained earnings 1,083 1,050 $5,913 $5,300 170 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 2005) Revenues Sales revenue $2,489 Gain on sale of land 40 $2,529 Expenses Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ($ in 00s) 2018 2017 Assets Cash $ 400 $ 205 Accounts receivable 390 210 Inventory 540 360 Land 550 515 Building 900 900 Less: Accumulated depreciation (300) (270) Equipment 2,600 2,270 Less: Accumulated depreciation (367) (340) Patent 1,200 1,450 $5,913 $5,300 Liabilities Accounts payable $ 640 $ 390 Accrued expenses payable 130 Lease liability-land 130 @ Shareholders' Equity Common stock 3,140 3,000 Paid-in capital-excess of par 750 730 Retained earnings 1,083 1,050 $5,913 $5,300 170 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 2005) Revenues Sales revenue $2,489 Gain on sale of land 40 $2,529 Expenses $2,489 40 $2,529 ($ in 2008) Revenues Sales revenue Gain on sale of land Expenses Cost of goods sold Depreciation expense-building Depreciation expense-equipment Loss on sale of equipment Amortization of patent Operating expenses Net income $ 840 30 216 15 250 550 1,901 $ 628 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 $210,000 (90% depreciated) was sold. C. The statement of shareholders' equity reveals reductions of $160,000 and $435,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (l.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2018 ($ in 000) Cash inflows: METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2018 ($ in 000) Cash inflows: Acquired land Cash balance, December 31 Cash balance, January 1 For interest $ 0 0 Acquired land Cash balance, December 31 Cash balance, January 1 For interest $ 0 0 0 $ 0 Noncash investing and financing activities
