Refer to the data provided in the P 21–5 for Metagrobolize Industries.

Data from in P 21-5

Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

Additional information from the accounting records:
a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024.
b. During 2024, equipment with a cost of $300,000 (90% depreciated) was sold.
c. 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 for Metagrobolize Industries using the indirect method.

Transcribed Image Text:

Assets Cash Accounts receivable Inventory METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent Liabilities Accounts payable Accrued liabilities Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 2024 $ 580 600 900 675 900 (300) 2,850 (525) 1,200 $6,880 $ 750 300 130 3,150 750 1,800 $6,880 2023 $ 375 450 525 600 900 (270) 2,250 (480) 1,500 $5,850 $450 225 0 3,000 675 1,500 $5,850