Problem - The comparative balance sheets for 2011 and 2010 and the statement of income for 2011 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.
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METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2011 and 2010 ($ in 000s)
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$2,011.00
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$2,010.00
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Assets
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Cash
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$525.00
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$375.00
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Accounts receivable
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$685.00
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$465.00
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Inventory
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$840.00
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$520.00
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Land
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$695.00
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$615.00
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Building
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$950.00
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$950.00
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Less: Accumulated depreciation
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-$317.00
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-$285.00
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Equipment
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$2,870.00
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$2,250.00
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Less: Accumulated depreciation
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-$534.00
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-$480.00
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Patent
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$1,200.00
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$1,500.00
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$6,914.00
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$5,910.00
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Liabilities
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Accounts payable
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$750.00
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$450.00
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Accrued expenses payable
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$300.00
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$225.00
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Lease liability-land
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$150.00
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$0.00
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Shareholders' Equity
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Common stock
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$3,150.00
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$3,000.00
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Paid-in capital-excess of par
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$765.00
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$675.00
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Retained earnings
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$1,799.00
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$1,560.00
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$6,914.00
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$5,910.00
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METAGROBOLIZE INDUSTRIES Income Statement For Year Ended December 31, 2011 ($ in 000s)
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Revenues
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Sales revenue
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$2,595.00
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Gain on sale of land
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$90.00
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$2,685.00
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Expenses
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Cost of goods sold
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$589.00
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Depreciation expense-building
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$32.00
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Depreciation expense-equipment
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$315.00
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Loss on sale of equipment
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$15.00
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Amortization of patent
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$300.00
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Operating expenses
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$500.00
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$1,751.00
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Net income
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$934.00
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Additional information from the accounting records:
a. During 2011, equipment with a cost of $290,000 (90% depreciated) was sold.
b. The statement of retained earnings reveals reductions of $240,000 and $455,000 for stock dividends and cash dividends, respectively.
Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2011. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.) (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign. Omit the ""$"" sign in your response.)