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 $ 410 $ 150 410 220 560 365 575 530 900 900 (200) (165) 2,650 2,330 (388) (360) 1,300 1,600 $ 6,217 $ 5,570 $ $ 660 180 130 360 130 0 Liabilities Accounts payable Accrued liabilities Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 3,160 3,000 500 495 1,587 1,585 $ 6,217 $5,570 $ 2,596 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 2,551 Gain on sale of land 45 Expenses Cost of goods sold 860 Depreciation expense-building 35 Depreciation expense-equipment 244 Loss on sale of equipment 10 Amortization of patent 300 Operating expenses 550 Net income 1,999 $ 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 $430,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.) METAGROBOLIZE INDUSTRIES Statement of Cash Flows 597 For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Net income $ Adjustments for noncash effects: Gain on sale of land Depreciation expense - Building Depreciation expense - Equipment Loss on sale of equipment (45) 35 244 10 Amortization expense 300 Changes in operating assets and liabilities: Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued expenses $ 1,141 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of land Sale of equipment 0 Net cash flows from investing activities Cash flows from financing activities: Payment of dividends Payment on lease liability 0 Net cash flows from investing activities Cash flows from financing activities: Payment of dividends Payment on lease liability 0 Net cash flows from financing activities Net increase in cash $ 0 Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired land by lease
