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.)

Principles of Accounting Volume 1
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Chapter6: Merchandising Transactions
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Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...
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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:

  1. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021.
  2. During 2021, equipment with a cost of $330,000 (90% depreciated) was sold.
  3. 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.)
 

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