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.

METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
	2024	2023
Assets
Cash	$ 540	$ 285
Accounts receivable	670	350
Inventory	820	430
Land	600	570
Building	900	900
Less: Accumulated depreciation	(250)	(220)
Equipment	3,300	3,110
Less: Accumulated depreciation	(481)	(440)
Patent	1,600	1,800
	$ 7,699	$ 6,785
Liabilities
Accounts payable	$ 920	$ 720
Accrued liabilities	310	250
Lease liability—land	130	0
Shareholders' Equity
Common stock	3,640	3,500
Paid-in capital—excess of par	550	460
Retained earnings	2,149	1,855
	$ 7,699	$ 6,785

METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues
Sales revenue	$ 3,152
Gain on sale of land	70	$ 3,222
Expenses
Cost of goods sold	$ 1,120
Depreciation expense—building	30
Depreciation expense—equipment	608
Loss on sale of equipment	25
Amortization of patent	200
Operating expenses	350	2,333
Net income		$ 889

Additional information from the accounting records:

Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024.

During 2024, equipment with a cost of $630,000 (90% depreciated) was sold.

The statement of shareholders' equity reveals reductions of $230,000 and $365,000 for stock dividends and cash dividends, respectively.

Required:

Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

Note: 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.

 

Answer rating: 100% (QA)

METAGROBOLIZE INDUSTRIES Statement of Cash Flows For the Year Ended Decem... View the full answer