Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries
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 2017Assets Cash$500 $305 Accounts receivable 590 310 Inventory 740 410 Land 750 735 Building 700 700 Less: Accumulated depreciation (200) (185) Equipment 3,100 2,870 Less: Accumulated depreciation (397) (360) Patent 1,200 1,450 $6,983 $6,235 Liabilities Accounts payable$840 $640 Accrued expenses payable 270 230 Lease liability—land 130 0 Shareholders’ Equity Common stock 3,700 3,500 Paid-in capital—excess of par 550 540 Retained earnings 1,493 1,325 $6,983 $6,235
METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2018
($ in 000s)Revenues Sales revenue$2,894 Gain on sale of land 90 $2,984 Expenses Cost of goods sold$1,040 Depreciation expense—building 15 Depreciation expense—equipment 496 Loss on sale of equipment 20 Amortization of patent 250 Operating expenses 400 2,221 Net income $763
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 $510,000 (90% depreciated) was sold.
- The statement of shareholders’ equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively.
Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
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