Prepare statement of cash flows for metagrobolize industries

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Reference no: EM13214764

Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.

METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
2013 2012
Assets
Cash $ 425 $ 245
Accounts receivable 350 190
Inventory 500 275
Land 500 450
Building 900 900
Less: Accumulated depreciation (200) (180)
Equipment 2,500 2,150
Less: Accumulated depreciation (325) (300)
Patent 1,000 1,150

$ 5,650 $ 4,880

Liabilities
Accounts payable $ 600 $ 400
Accrued expenses payable 150 130
Lease liability-land 150 0
Shareholders' Equity
Common stock 3,100 3,000
Paid-in capital-excess of par 750 700
Retained earnings 900 650

$ 5,650 $ 4,880

METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
Revenues
Sales revenue $ 2,555
Gain on sale of land 30 $ 2,585

Expenses
Cost of goods sold $ 800
Depreciation expense-building 20
Depreciation expense-equipment 160
Loss on sale of equipment 10
Amortization of patent 150
Operating expenses $ 600 1,740

Net income $ 845

Additional information from the accounting records:
a. During 2013, equipment with a cost of $150,000 (90% depreciated) was sold.
b. The statement of shareholders' equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively.
c. The land leased during the year is classified as an asset by the company.

Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Reference no: EM13214764

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