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 bees) 2018 2017 $ 470 $ 50 220 280 395 680 Assets Cash Accounts receivable Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent 2009 800 (200) 2,950 (314) 1,900 $ 7,496 800 (170) 2,690 (300) 2,090 56,535 $ $ 780 240 130 630 215 Liabilities Accounts payable Accrued expenses payable Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 2,500 545 2,640 600 3,106 $ 7,496 2,645 $ 6,535 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 200) Revenues Sales revenue $ 3,123 Gain on sale of land $ 3,198 Expenses Cost of goods sold Depreciation expense-building Depreciation expense-equipment Loss on sale of equipment Amortization of patent 100 Operating expenses $ 600 12, 142 Net Income $ 1,056 90 412 20 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 $400,000 for stock dividends and cash dividends, respectively Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. (i.e.. 10,000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. 1,056 ME TAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2018 ($ 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 OOOOO 30 412 20 100 (75) oo Changes in operating assets and liabilities: Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued expenses (250) (285) 150 25 Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued expenses 0 0 0 0 (250) (285) 150 25 ooo Net cash flows from operating activities 0 1,183 0 Cash flows from investing activities: Sale of equipment Purchase of equipment Sale of land Net cash flows from investing activities O 220 (680) 125 (533) Cash flows from financing activities: Payment of cash dividends Payment on lease liability (400) Net cash flows from financing activities (400) Net increase in cash Cash balance, January 1 Cash balance, December 31 250 220 470 $ Noncash investing and financing activities Acquired land
