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 $ 390 $ 170 Accounts receivable 370 200 Inventory 520 355 Land 525 500 Building 900 900 Less: Accumulated depreciation (250 ) (225) Equipment 2,550 2,210 Less: Accumulated depreciation (346 ) (320 ) Patent 1,100 1,300 $ 5,759 $ 5,090 Liabilities Accounts payable $ 620 $ 470 Accrued liabilities 160 130 Lease liability—land 130 0 Shareholders' Equity Common stock 3,120 3,000 Paid-in capital—excess of par 750 715 Retained earnings 979 775 $ 5,759 $ 5,090 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 2,512 Gain on sale of land 35 $ 2,547 Expenses Cost of goods sold $ 820 Depreciation expense—building 25 Depreciation expense—equipment 188 Loss on sale of equipment 15 Amortization of patent 200 Operating expenses 500 1,748 Net income $ 799 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 $180,000 (90% depreciated) was sold. The statement of shareholders' equity reveals reductions of $155,000 and $440,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2021. Present cash flows from operating activities by the direct 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.)

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 $ 390 $ 170 Accounts receivable 370 200 Inventory 520 355 Land 525 500 Building 900 900 Less: Accumulated depreciation (250 ) (225) Equipment 2,550 2,210 Less: Accumulated depreciation (346 ) (320 ) Patent 1,100 1,300 $ 5,759 $ 5,090 Liabilities Accounts payable $ 620 $ 470 Accrued liabilities 160 130 Lease liability—land 130 0 Shareholders' Equity Common stock 3,120 3,000 Paid-in capital—excess of par 750 715 Retained earnings 979 775 $ 5,759 $ 5,090 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 2,512 Gain on sale of land 35 $ 2,547 Expenses Cost of goods sold $ 820 Depreciation expense—building 25 Depreciation expense—equipment 188 Loss on sale of equipment 15 Amortization of patent 200 Operating expenses 500 1,748 Net income $ 799 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 $180,000 (90% depreciated) was sold. The statement of shareholders' equity reveals reductions of $155,000 and $440,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2021. Present cash flows from operating activities by the direct 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 (7)

METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands)
		2021		2020
Assets
Cash	$	390			$	170
Accounts receivable		370				200
Inventory		520				355
Land		525				500
Building		900				900
Less: Accumulated depreciation		(250	)			(225)
Equipment		2,550				2,210
Less: Accumulated depreciation		(346	)			(320	)
Patent		1,100				1,300
	$	5,759			$	5,090
Liabilities
Accounts payable	$	620			$	470
Accrued liabilities		160				130
Lease liability—land		130				0
Shareholders' Equity
Common stock		3,120				3,000
Paid-in capital—excess of par		750				715
Retained earnings		979				775
	$	5,759			$	5,090

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands)
Revenues
Sales revenue	$	2,512
Gain on sale of land		35	$	2,547
Expenses
Cost of goods sold	$	820
Depreciation expense—building		25
Depreciation expense—equipment		188
Loss on sale of equipment		15
Amortization of patent		200
Operating expenses		500		1,748
Net income			$	799

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 $180,000 (90% depreciated) was sold.
The statement of shareholders' equity reveals reductions of $155,000 and $440,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2021. Present cash flows from operating activities by the direct 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

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.