Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below
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Question:
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 | 2017 | |||||||
Assets | ||||||||
Cash | $ | 400 | $ | 170 | ||||
Accounts receivable | 430 | 230 | ||||||
Inventory | 580 | 370 | ||||||
Land | 550 | 545 | ||||||
Building | 900 | 900 | ||||||
Less: Accumulated depreciation | (250 | ) | (210 | ) | ||||
Equipment | 2,700 | 2,390 | ||||||
Less: Accumulated depreciation | (409 | ) | (380 | ) | ||||
Patent | 1,400 | 1,500 | ||||||
$ | 6,301 | $ | 5,515 | |||||
Liabilities | ||||||||
Accounts payable | $ | 680 | $ | 480 | ||||
Accrued expenses payable | 190 | 115 | ||||||
Lease liability—land | 130 | 0 | ||||||
Shareholders' Equity | ||||||||
Common stock | 3,160 | 3,000 | ||||||
Paid-in capital—excess of par | 500 | 490 | ||||||
Retained earnings | 1,641 | 1,430 | ||||||
$ | 6,301 | $ | 5,515 | |||||
METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in 000s) | ||||||
Revenues | ||||||
Sales revenue | $ | 2,608 | ||||
Gain on sale of land | 50 | $ | 2,658 | |||
Expenses | ||||||
Cost of goods sold | $ | 880 | ||||
Depreciation expense—building | 40 | |||||
Depreciation expense—equipment | 272 | |||||
Loss on sale of equipment | 10 | |||||
Amortization of patent | 100 | |||||
Operating expenses | $ | 550 | 1,852 | |||
Net income | $ | 806 | ||||
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 $270,000 (90% depreciated) was sold.
- The statement of shareholders’ equity reveals reductions of $170,000 and $425,000 for stock dividends and cash dividends, respectively.
Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Amounts to be deducted should be indicated with a minus sign.)
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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