Question: Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting
| Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also. |
| METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2013 and 2012 ($ in 000s) | ||||
| 2013 | 2012 | |||
| Assets | ||||
| Cash | $ | 520 | $ | 305 |
| Accounts receivable | 590 | 310 | ||
| Inventory | 740 | 410 | ||
| Land | 750 | 735 | ||
| Building | 700 | 700 | ||
| Less: Accumulated depreciation | (200) | (185) | ||
| Equipment | 3,100 | 2,870 | ||
| Less: Accumulated depreciation | (397) | (360) | ||
| Patent | 1,200 | 1,450 | ||
| $ | 7,003 | $ | 6,235 | |
| Liabilities | ||||
| Accounts payable | $ | 840 | $ | 640 |
| Accrued expenses payable | 270 | 230 | ||
| Lease liabilityland | 150 | 0 | ||
| Shareholders' Equity | ||||
| Common stock | 3,700 | 3,500 | ||
| Paid-in capitalexcess of par | 550 | 540 | ||
| Retained earnings | 1,493 | 1,325 | ||
| $ | 7,003 | $ | 6,235 | |
| METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2013 ($ in 000s) | ||||
| Revenues | ||||
| Sales revenue | $ | 2,894 | ||
| Gain on sale of land | 90 | $ | 2,984 | |
| Expenses | ||||
| Cost of goods sold | $ | 1,040 | ||
| Depreciation expensebuilding | 15 | |||
| Depreciation expenseequipment | 496 | |||
| Loss on sale of equipment | 20 | |||
| Amortization of patent | 250 | |||
| Operating expenses | $ | 400 | 2,221 | |
| Net income | $ | 763 | ||
| Additional information from the accounting records: | |
| a. | During 2013, equipment with a cost of $510,000 (90% depreciated) was sold. |
| b. | The statement of shareholders equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively. |
| c. | The land leased during the year is classified as an asset by the company |
| Required: |
| Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
|
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