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) 2921 2020 Assets Cash $ 560 $ 37e Accounts receivable 710 370 Inventory 868 440 Land 700 670 Building 980 980 Less: Accumulated depreciation (280) (160) Equipment 3,400 3,230 Less: Accumulated depreciation (343) (380) Patent 1,899 2,100 $ 8,387 $ 7,620 Liabilities Accounts payable $ 960 $ 710 Accrued liabilities 33e 260 Lease liability-land 130 Shareholders' Equity Common stock 3,680 3,500 Paid-in capital-excess of par 898 740 Retained earnings 2,487 2,410 $ 8,387 $ 7,620 $ 3,211 ME TAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 3,131 Gain on sale of land 80 Expenses Cost of goods sold 1,160 Depreciation expense-building 40 Depreciation expense-equipment 664 Loss on sale of equipment 25 Amortization of patent 380 Operating expenses 350 Net income 31****** 2,539 $ 672 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 $690.000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $240.000 and $355.000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method (Enter your answers in thousands (l.e., 10,000 should be entered as 10).) Amounts to be deducted should be Indicated with a minus sign.) 672 METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Net Income S Adjustments for noncash effects: Depreciation expense - Building Depreciation expense - Equipment Amortization expense Gain on sale of land Loss on sale of equipment 40 084 300 (80) 25 Changes in operating assets and liabilities: Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued expenses (340) (420) 250 70 s 1,181 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of land Sale of equipment (880) 200 44 (616) Net cash flows from investing activities Cash flows from financing activities: Payment of dividends Payment on lease liability (355) (20) Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired land by lease (375) 190 370 560 S
