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The statement of shareholders equity reveals reductions of

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Reference no: EM13582747

The comparative balance sheets for 2013 and 2012 and the 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 $ 600 $ 375
Accounts receivable
600
450  
Inventory
900
525  
Land
675
600  
Building
900
900
Less: Accumulated depreciation
(300)
(270)
Equipment
2,850
2,250
Less: Accumulated depreciation
(525)
(480)
Patent
1,200
1,500






$ 6,900 $ 5,850  





Liabilities



Accounts payable $ 750 $ 450
Accrued expenses payable
300
225
Lease liability-land
150
0
Shareholders' Equity



Common stock
3,150
3,000  
Paid-in capital-excess of par
750
675  
Retained earnings
1,800
1,500  






$ 6,900 $ 5,850






METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
Revenues



Sales revenue $ 2,645

Gain on sale of land
90   $ 2,735  





Expenses



Cost of goods sold $ 600

Depreciation expense-building
30

Depreciation expense-equipment
315

Loss on sale of equipment
15

Amortization of patent
300

Operating expenses $ 500
1,760





Net income

$ 975






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.
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: EM13582747

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