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Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
Additional information from the accounting records:a. During 2013, equipment with a cost of $300,000 (90% depreciated) was sold.b. The statement of shareholders equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively.Required:Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operatingactivities.)
Arrange the steps of the accounting cycle in proper order - explain what occurs at each step of the accounting cycle.
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