Reference no: EM132331592

Question

You have been able to figure out all but the sale of equipment & sale of land, assistance and information on how the answer was determined would be appreciated.

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.)