Question
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
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 $ 520 $ 225 Accounts receivable 630 330 Inventory 780 420 Land 550 540 Building 700 700 Less: Accumulated depreciation (300 ) (280) Equipment 3,200 2,990 Less: Accumulated depreciation (439 ) (400 ) Patent 1,400 1,500 $ 7,041 $ 6,025 Liabilities Accounts payable $ 880 $ 630 Accrued liabilities 290 240 Lease liabilityland 130 0 Shareholders' Equity Common stock 3,600 3,500 Paid-in capitalexcess of par 550 430 Retained earnings 1,591 1,225 $ 7,041 $ 6,025 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 3,078 Gain on sale of land 60 $ 3,138 Expenses Cost of goods sold $ 1,080 Depreciation expensebuilding 20 Depreciation expenseequipment 552 Loss on sale of equipment 25 Amortization of patent 100 Operating expenses 400 2,177 Net income $ 961 Additional information from the accounting records: Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. During 2021, equipment with a cost of $570,000 (90% depreciated) was sold. The statement of shareholders' equity reveals reductions of $220,000 and $375,000 for stock dividends and cash dividends, respectively.
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