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.)

METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2013 and 2012 (S in 000s) 2013 2012 Assets Cash Accounts receivable Inventory Land Building S 600 600 900 675 900 (300) 2,850 (525) 1,200 $6,900 $ 375 450 525 600 900 (270) 2,250 (480) 1,500 $5,850 Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent Liabilities Accounts payable Accrued expenses payable Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings $750 300 150 $ 450 225 0 3,150 750 1,800 $6,900 3,000 675 1,500 $5,850 METAGROBOLIZE INDUSTRIES income Statement For the Year Ended December 31, 2013 ($ in 000s) Revenues Sales revenue Gain on sale of land $2,645 90 $2,735 Expenses Cost of goods sold Depreciation expense-building Depreciation expense-equipment Loss on sale of equipment Amortization of patent Operating expenses $ 600 30 315 15 300 500 1,760 S 975 Net income