INDIRECT METHOD 2 Sections of Operating Activities!! (Non-Cash Effects and changes in Operating Assets and Liabilities ) ALSO NON-CASH INVESTING AND FINANCING ACTIVITIES INCASE NEEDED PLEASE DO IN SAME FORMAT AS PRESENTED IN THE PROBLEM!! THANK YOU AGAIN!
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 de ation Patent $ 580 600 900 675 900 (300) 2,850 (525) 1,200 $ 6,880 $ 375 450 525 600 900 (270) 2,250 (480) 1,500 $ 5,850 $ $ 750 300 130 450 225 0 Liabilities Accounts payable Accrued liabilities Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 3,150 750 1,800 $ 6,880 3,000 675 1,500 $ 5,850 $ 2,735 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 2,645 Gain on sale of land 90 Expenses Cost of goods sold 600 Depreciation expense-building 30 Depreciation expense-equipment 315 Loss on sale of equipment 15 Amortization of patent 300 Operating expenses 500 Net income 1,760 $ 975 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 $300,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).) METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2021 ($ in 000) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities
