The statement of shareholders equity reveals reductions of

Reference no: EM13582770

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.)

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: EM13582770

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