Revenues METAGROBOLIZE INDUSTRIES Incone Statenent Expenses For the Year Ended December 31, 2824 (s in thousands) Sales revenue Gain on sale of land Cost of goods sold Depreciation expense-building Depreciation expense-equipment Less on sale of equipment Amortization of patent Operating expenses Net income $ 3,061 70 $ 960 25 384 20 300 600 $ 3,131 2,209 $ 842 Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024. b. During 2024, equipment with a cost of $390,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $190,000 and $405,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. Note: Enter your answers in thousands (.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign
Revenues METAGROBOLIZE INDUSTRIES Incone Statenent Expenses For the Year Ended December 31, 2824 (s in thousands) Sales revenue Gain on sale of land Cost of goods sold Depreciation expense-building Depreciation expense-equipment Less on sale of equipment Amortization of patent Operating expenses Net income $ 3,061 70 $ 960 25 384 20 300 600 $ 3,131 2,209 $ 842 Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024. b. During 2024, equipment with a cost of $390,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $190,000 and $405,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. Note: Enter your answers in thousands (.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Revenues
METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2824
(s in thousands)
Sales revenue
Gain on sale of land
Expenses
Cost of goods sold
Depreciation expense-building
Depreciation expense-equipment
Loss on sale of equipment
Amortization of patent
Operating expenses
Net income
$ 3,061
70
$960
25
From customers
384
Additional information from the accounting records
a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024.
b. During 2024, equipment with a cost of $390,000 (90% depreciated) was so05.000 for stock dividends and cash dividends,
c. The statement of shareholders' equity reveals reductions of $190,000 and
respectively.
Cash outflows:
20
300
600
Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2024. Present cash flows from operating
activities by the direct method.
To suppliers of goods
For operating expenses
Note: 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.
Show Transcribed Text
Cash flows from operating activities:
Cash inflows:
Sale of land
Sale of equipment
$3,131
2,289
$ 842
Net cash flows from operating activities
Cash flows from investing activities:
Purchase of equipment
($ in thousands)
Net cash flows from investing activities
Cash flows from financing activities:
Payment on lease liability
Payment of dividends
Net cash flows from financing activities
$
0
0
0
Transcribed Image Text:Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Metagrobolize Industries
Additional information from the accounting records of Metagrobolize also is provided.
Assets
Cash
METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets:
December 31, 2024 and 2023.
($ in thousands)
Accounts receivable
Inventory.
Land
Building
Less: Accumulated depreciation
Equipment
Less: Accumulated depreciation
Patent
Liabilities
Accounts payable
Accrued liabilities
Lease liability-land
Shareholders' Equity.
Common stock
Paid-in capital-excess of par
Retained earnings
2024
$ 460
510
660
700
800
(300)
2,900
(493)
1,800
$ 7,037
$ 760
230
130
2,620
600
2,697
$ 7,037
2023
$ 190
270
390
605
800
(275)
2,630
(460)
2,100
$ 6,250
$ 560
210
0
2,500
530
2,450
$ 6,250
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