Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

image text in transcribedimage text in transcribed

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 Accounts receivable Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent 550 690 840 650 900 (300) 3,350 (502) 1,700 $ 7,878 $ 340 360 435 600 900 (265) 3,170 (460) 1,950 $ 7,030 $ 940 320 130 790 255 Liabilities Accounts payable Accrued liabilities Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of Retained earnings par 3,660 800 2,028 $ 7,878 3,500 725 1,760 $ 7,030 $ 3,299 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 3,224 Gain on sale of land 75 Expenses Cost of goods sold 1,140 Depreciation expense-building 35 Depreciation expense-equipment 636 Loss on sale of equipment 25 Amortization of patent 250 Operating expenses 350 Net income 2,436 $ 863 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 $660,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $235,000 and $360,000 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 with AI-Powered 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

Recommended Textbook for

Auditing A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

978-1305080577

Students also viewed these Accounting questions