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 $ 405 $ 245

Accounts receivable 350 190

Inventory 500 275

Land 500 450

Building 900 900

Less: Accumulated depreciation (200 ) (180)

Equipment 2,500 2,150

Less: Accumulated depreciation (325 ) (300 )

Patent 1,000 1,150

$ 5,630 $ 4,880

Liabilities

Accounts payable $ 600 $ 400

Accrued expenses payable 150 130

Lease liabilityland 130 0

Shareholders' Equity

Common stock 3,100 3,000

Paid-in capitalexcess of par 750 700

Retained earnings 900 650

$ 5,630 $ 4,880

METAGROBOLIZE INDUSTRIES

Income Statement

For the Year Ended December 31, 2018

($ in 000s)

Revenues

Sales revenue $ 2,555

Gain on sale of land 30 $ 2,585

Expenses Cost of goods sold $ 800

Depreciation expensebuilding 20

Depreciation expenseequipment 160

Loss on sale of equipment 10

Amortization of patent 150

Operating expenses 600 1,740

Net income $ 845

Additional information from the accounting records:

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

During 2018, equipment with a cost of $150,000 (90% depreciated) was sold.

The statement of shareholders' equity reveals reductions of $150,000 and $445,000 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.)