Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 400 $ 178 Accounts receivable 430 230 Inventory 580 370 Land 550 545 Building 900 900 Less: Accumulated depreciation (250) (210) Equipment 2,700 2,390 Less: Accumulated depreciation (409) (380) Patent 1,400 1,500 $ 6,301 $5,515 Liabilities Accounts payable $ 680 $ 480 Accrued liabilities 190 115 Lease liability-land 130 @ Shareholders' Equity Common stock 3,160 3,000 Paid-in capital-excess of par 500 490 Retained earnings 1,641 1,430 $ 6,301 $5,515 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 (s in thousands) Revenues Sales revenue $2,608 Gain on sale of land 50 $2,658 Expenses Cost of goods sold $ 880 Depreciation expense-building 40 Depreciation expense-equipment 272 Loss on sale of equipment 10 Amortization of patent 100 Operating expenses 550 1,852 Net Income $ 806 Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021 b. During 2021, equipment with a cost of $270,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $170,000 and $425,000 for stock dividends and cash dividends, reknectively Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries, Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 (s in thousands) 2021 2020 Assets Cash Accounts receivable Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent $ 400 $ 170 430 230 SB 370 550 545 900 900 (250) (210) 2,700 2,390 (409) (380) 1,400 1,500 $6,301 $5,515 $ $ 680 190 130 480 115 Liabilities Accounts payable Accrued liabilities Lease liability-Land Shareholders. Equity Common stock Paid-in capital-excess of par Retained earnings 3,000 490 3,160 500 1,641 $6,301 $5,515 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 is in thousands) Revenues Sales revenue $2,608 Gain on sale of land 50 $2,658 Expenses Cost of goods sold $ 880 Depreciation expense-building 40 Depreciation expense-equipment 272 Loss on sale of equipment 10 Amortization of patent lee Operating expenses 550 1,852 Net income $ 886 Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. b. During 2021, equipment with a cost of $270,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $170,000 and $425,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) METAGROBOLIZE INDUSTRIES Statement of Cash Flows For the year ended December 31, 2021 (5 in thousands) Cash flows from operating activities: Cash Inflows: Cash outflows: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash 0
