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Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the
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 2820 Assets Cash 410 $ 150 Accounts receivable 410 220 Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent 560 365 575 530 900 900 (200) (165) 2,658 2,330 (388) (360) 1,300 1,600 $ 6,217 $ 5,570 Liabilities Accounts payable $ 660 $ 360 Accrued liabilities 188 130 Lease liability-land 138 B Shareholders' Equity Common stock 3,168 3,000 Paid-in capital-excess of par Retained earnings 500 1,587 495 1,585. $ 6,217 $ 5,570 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue Gain on sale of land Expenses Cost of goods sold $ 2,551 45 $ 2,596 860 Depreciation expense-building 35 Depreciation expense-equipment 244 Loss on sale of equipment 10 Amortization of patent 300 Operating expenses 550 1,999 Net income $ 597 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 $240,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $165,000 and $430,000 for stock dividends and cash dividends. respectively.
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