ay 7 (8) 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 $ 440 $ 190 Accounts receivable 470 250 Inventory 620 380 Land 625 575 Building 800 800 Less: Accumulated depreciation (200 ) (170 ) Equipment 2,800 2,510 Less: Accumulated depreciation (451 ) (420 ) Patent 1,600 1,800 $ 6,704 $ 5,915 Liabilities Accounts payable $ 720 $ 470 Accrued liabilities 210 165 Lease liability—land 130 0 Shareholders' Equity Common stock 2,650 2,500 Paid-in capital—excess of par 500 470 Retained earnings 2,494 2,310 $ 6,704 $ 5,915 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 2,807 Gain on sale of land 60 $ 2,867 Expenses Cost of goods sold 920 Depreciation expense—building 30 Depreciation expense—equipment 328 Loss on sale of equipment 10 Amortization of patent 200 Operating expenses 600 2,088 Net income $ 779 Additional information from the accounting records: Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. During 2021, equipment with a cost of $330,000 (90% depreciated) was sold. The statement of shareholders’ equity reveals reductions of $180,000 and $415,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (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.)

ay 7 (8) 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 $ 440 $ 190 Accounts receivable 470 250 Inventory 620 380 Land 625 575 Building 800 800 Less: Accumulated depreciation (200 ) (170 ) Equipment 2,800 2,510 Less: Accumulated depreciation (451 ) (420 ) Patent 1,600 1,800 $ 6,704 $ 5,915 Liabilities Accounts payable $ 720 $ 470 Accrued liabilities 210 165 Lease liability—land 130 0 Shareholders' Equity Common stock 2,650 2,500 Paid-in capital—excess of par 500 470 Retained earnings 2,494 2,310 $ 6,704 $ 5,915 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 2,807 Gain on sale of land 60 $ 2,867 Expenses Cost of goods sold 920 Depreciation expense—building 30 Depreciation expense—equipment 328 Loss on sale of equipment 10 Amortization of patent 200 Operating expenses 600 2,088 Net income $ 779 Additional information from the accounting records: Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. During 2021, equipment with a cost of $330,000 (90% depreciated) was sold. The statement of shareholders’ equity reveals reductions of $180,000 and $415,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (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.)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 20P

See similar textbooks

Related questions

Question

Day 7 (8)

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	$	440		$	190
Accounts receivable		470			250
Inventory		620			380
Land		625			575
Building		800			800
Less: Accumulated depreciation		(200	)		(170	)
Equipment		2,800			2,510
Less: Accumulated depreciation		(451	)		(420	)
Patent		1,600			1,800
	$	6,704		$	5,915
Liabilities
Accounts payable	$	720		$	470
Accrued liabilities		210			165
Lease liability—land		130			0
Shareholders' Equity
Common stock		2,650			2,500
Paid-in capital—excess of par		500			470
Retained earnings		2,494			2,310
	$	6,704		$	5,915

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands)
Revenues
Sales revenue	$	2,807
Gain on sale of land		60	$	2,867
Expenses
Cost of goods sold		920
Depreciation expense—building		30
Depreciation expense—equipment		328
Loss on sale of equipment		10
Amortization of patent		200
Operating expenses		600		2,088
Net income			$	779

Additional information from the accounting records:

Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021.
During 2021, equipment with a cost of $330,000 (90% depreciated) was sold.
The statement of shareholders’ equity reveals reductions of $180,000 and $415,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (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.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.