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 | $ | 570 | $ | 340 |
| Accounts receivable | 690 | 360 | ||
| Inventory | 840 | 435 | ||
| Land | 650 | 600 | ||
| Building | 900 | 900 | ||
| Less: Accumulated depreciation | (300) | (265) | ||
| Equipment | 3,350 | 3,170 | ||
| Less: Accumulated depreciation | (502) | (460) | ||
| Patent | 1,700 | 1,950 | ||
| $ | 7,898 | $ | 7,030 | |
| Liabilities | ||||
| Accounts payable | $ | 940 | $ | 790 |
| Accrued expenses payable | 320 | 255 | ||
| Lease liabilityland | 150 | 0 | ||
| Shareholders' Equity | ||||
| Common stock | 3,660 | 3,500 | ||
| Paid-in capitalexcess of par | 800 | 725 | ||
| Retained earnings | 2,028 | 1,760 | ||
| $ | 7,898 | $ | 7,030 | |
| METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2013 ($ in 000s) | ||||
| Revenues | ||||
| Sales revenue | $ | 3,224 | ||
| Gain on sale of land | 75 | $ | 3,299 | |
| Expenses | ||||
| Cost of goods sold | $ | 1,140 | ||
| Depreciation expensebuilding | 35 | |||
| Depreciation expenseequipment | 636 | |||
| Loss on sale of equipment | 25 | |||
| Amortization of patent | 250 | |||
| Operating expenses | $ | 350 | 2,436 | |
| Net income | $ | 863 | ||
| Additional information from the accounting records: | |
| a. | During 2013, equipment with a cost of $660,000 (90% depreciated) was sold. |
| b. | The statement of shareholders equity reveals reductions of $235,000 and $360,000 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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