Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash Accounts receivable Inventory Land Building Less: Accumulated depreciation

image text in transcribedimage text in transcribed

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 $ 390 450 600 600 900 (300) 2,750 (430) 1,500 $ 6,460 $ 190 240 375 560 900 (285) 2,450 (400) 1,650 $ 5,680 $ 780 $ 550 209175 130 Liabilities Accounts payable Accrued liabilities Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 3,110 550 1,770 $ 6,460 3.000 485 1,470 $ 5,680 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $2,765 Gain on sale of land 55 $2,820 Expenses Cost of goods sold $ 900 Depreciation expense-building 15 Depreciation expense-equipment 300 Loss on sale of equipment 10 Amortization of patent 150 Operating expenses 550 1,925 Net income $ 895 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 $175,000 and $420,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2021. Present cash flows from operating activities by the direct 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 to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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 And Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

12th Edition

1264100671, 978-1264100675

More Books

Students also viewed these Accounting questions