Problem 21-17 Statement of cash flows; indirect method [LO21-4, 21-8]

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	$	470			$	220
Accounts receivable		530				280
Inventory		680				395
Land		700				620
Building		800				800
Less: Accumulated depreciation		(200	)			(170	)
Equipment		2,950				2,690
Less: Accumulated depreciation		(334	)			(300	)
Patent		1,900				2,000
	$	7,496			$	6,535
Liabilities
Accounts payable	$	780			$	630
Accrued expenses payable		240				215
Lease liabilityland		130				0
Shareholders' Equity
Common stock		2,640				2,500
Paid-in capitalexcess of par		600				545
Retained earnings		3,106				2,645
	$	7,496			$	6,535

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue	$	3,123
Gain on sale of land		75		$	3,198
Expenses
Cost of goods sold	$	980
Depreciation expensebuilding		30
Depreciation expenseequipment		412
Loss on sale of equipment		20
Amortization of patent		100
Operating expenses	$	600			2,142
Net income				$	1,056

Additional information from the accounting records:

1. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.
2. During 2018, equipment with a cost of $420,000 (90% depreciated) was sold.
3. The statement of shareholders equity reveals reductions of $195,000 and $400,000 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.)