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I cannot get the calculation for purchase of equipment or sale of land. I would appreciate the help! Comparative balance sheets for 2018 and 2017
I cannot get the calculation for purchase of equipment or sale of land. I would appreciate the help!
Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) | ||||||||
2018 | 2017 | |||||||
Assets | ||||||||
Cash | $ | 540 | $ | 285 | ||||
Accounts receivable | 670 | 350 | ||||||
Inventory | 820 | 430 | ||||||
Land | 600 | 570 | ||||||
Building | 900 | 900 | ||||||
Less: Accumulated depreciation | (250 | ) | (220) | |||||
Equipment | 3,300 | 3,110 | ||||||
Less: Accumulated depreciation | (481 | ) | (440 | ) | ||||
Patent | 1,600 | 1,800 | ||||||
$ | 7,699 | $ | 6,785 | |||||
Liabilities | ||||||||
Accounts payable | $ | 920 | $ | 720 | ||||
Accrued expenses payable | 310 | 250 | ||||||
Lease liabilityland | 130 | 0 | ||||||
Shareholders' Equity | ||||||||
Common stock | 3,640 | 3,500 | ||||||
Paid-in capitalexcess of par | 550 | 460 | ||||||
Retained earnings | 2,149 | 1,855 | ||||||
$ | 7,699 | $ | 6,785 | |||||
METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s) | ||||||
Revenues | ||||||
Sales revenue | $ | 3,152 | ||||
Gain on sale of land | 70 | $ | 3,222 | |||
Expenses | ||||||
Cost of goods sold | $ | 1,120 | ||||
Depreciation expensebuilding | 30 | |||||
Depreciation expenseequipment | 608 | |||||
Loss on sale of equipment | 25 | |||||
Amortization of patent | 200 | |||||
Operating expenses | 350 | 2,333 | ||||
Net income | $ | 889 | ||||
Additional information from the accounting records:
- Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.
- During 2018, equipment with a cost of $630,000 (90% depreciated) was sold.
- The statement of shareholders' equity reveals reductions of $230,000 and $365,000 for stock dividends and cash dividends, respectively.
Statement of Cash Flows For year ended December 31, 2018 (\$ in 000s) Cash flows from operating activities: Cash inflows: From customers $2,832 Cash outflows
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