Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 540 $ 285
Accounts receivable 670 350
Inventory 820 430
Land 600 570
Building 900 900
Less: Accumulated depreciation (250 ) (220 )
Equipment 3,300 3,110
Less: Accumulated depreciation (481 ) (440 )
Patent 1,600 1,800
$ 7,699 $ 6,785
Liabilities
Accounts payable $ 920 $ 720
Accrued expenses payable 310 250
Lease liabilityland 130 0
Shareholders' Equity
Common stock 3,640 3,500
Paid-in capitalexcess of par 550 460
Retained earnings 2,149 1,855
$ 7,699 $ 6,785

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue $ 3,152
Gain on sale of land 70 $ 3,222
Expenses
Cost of goods sold $ 1,120
Depreciation expensebuilding 30
Depreciation expenseequipment 608
Loss on sale of equipment 25
Amortization of patent 200
Operating expenses $ 350 2,333
Net income $ 889

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 $630,000 (90% depreciated) was sold.

The statement of shareholders equity reveals reductions of $230,000 and $365,000 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions