Comparative balance sheets for $2021$ and $2020$ and a statement of income for $2021$ are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

METAGROBOLIZE INDUSTRIES

Comparative Balance Sheets

December $31,2021$ and $2020$

$($$ in thousands$)$

$2021$

$2020$

Assets

Cash

Accounts receivable

Inventory

Land

Building

Less: Accumulated depreciation

Equipment

Less: Accumulated depreciation

Patent

$$580$

$$,375$

$600$

$450$

$900$

$525$

$675$

$600$

$900$

$(270)$

$2,250$

$(480)$

Patent

$1,200$

$1,500$

$$6,880$

$$5,850$

Liabilities

Accounts payable

Accrued liabilities

$$750$

$$450$

Lease liability$-$land

$300$

$225$

Shareholders' Equity

Common stock

Paid$-$in capital$-$excess of par

Retained earnings

$130$

$0$

METAGROBOLIZE INDUSTRIES

Income Statement

For the Year Ended December $31,2021$

$($$ in thousands$)$

Revenues

Sales revenue

$$2,645$

Gain on sale of land

$90$

$$2,735$

Expenses

Cost of goods sold

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$.$ Annual payments of $$20,000$ on the finance lease liability are paid each January $1,$ beginning in $2021.$

b$.$ During $2021,$ 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 of Metagrobolize for the year ended December $31,2021.$ Present cash flows from operating activities by the direct method. $($You may omit the schedule to reconcile net income to cash flows from operating activities.$)$