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 o0os) 2018 2017 Assets Cash Accounts receivable Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent 470 $ 220 280 530 680 395 700 620 800 (200) 2,950 (334) 1,900 $ 7,496 $ 6,535 800 (170) 2,690 (300) 2,000 Liabilities Accounts payable Accrued expenses payable Lease liability-land shareholders Equity Common stock Paid-in capital-excess of par Retained earnings 2. 240 780 630 215 130 2,640 600 2,500 545 3,106 2,645 $7,496 $ 6,535 ATAPRnnn METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 (S in 00es) Revenues Sales revenue $ 3,123 75 $ 3,198 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 980 30 412 20 100 600 2,142 Net income $ 1,056 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 $420.000 (90% depreciated) was sold. c The statement of shareholders' equity reveals reductions of $195,000 and $400,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. (i.e. 10,000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2018 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense-Building Depreciation expense-Equipment Loss on sale of equipment Amortization of patent Gain on sale of land Changes in operating assets and liabilities: Increase in accounts receivable Increase in inventory ( Prev 5 of 5. DELL Changes in operating assets and liabilities: Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued expenses 2$ Net cash flows from operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Sale of land Net cash flows from investing activities Cash flows from financing activities: Payment of cash dividends Payment on lease liability Net cash flows from financing activities Cash flows from finahcing activities: Payment of cash dividends Payment on lease liability Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 2$ Noncash investing and financing activities: Acquired land %24
