Comparative balance sheets for 2016 and 2015 and a statement of income for 2016 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.

METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)

2016

2015

Assets

Cash

$

410

$

190

Accounts receivable

450

240

Inventory

600

375

Land

600

560

Building

900

900

Less: Accumulated depreciation

(300)

(285)

Equipment

2,750

2,450

Less: Accumulated depreciation

(430)

(400)

Patent

1,500

1,650

$

6,480

$

5,680

Liabilities

Accounts payable

$

700

$

550

Accrued expenses payable

200

175

Lease liabilityland

150

0

Shareholders' Equity

Common stock

3,110

3,000

Paid-in capitalexcess of par

550

485

Retained earnings

1,770

1,470

$

6,480

$

5,680

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2016 ($ in 000s)

Revenues

Sales revenue

$

2,765

Gain on sale of land

55

$

2,820

Expenses

Cost of goods sold

$

900

Depreciation expensebuilding

15

Depreciation expenseequipment

300

Loss on sale of equipment

10

Amortization of patent

150

Operating expenses

550

1,925

Net income

$

895

Additional information from the accounting records:
a.	During 2016, equipment with a cost of $300,000 (90% depreciated) was sold.
b.	The statement of shareholders' equity reveals reductions of $175,000 and $420,000 for stock dividends and cash dividends, respectively.

Required:

Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)