The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.
METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s) |
|
|
2013 |
|
2012 |
| Assets |
|
|
|
|
| Cash |
$ |
600 |
$ |
375 |
| Accounts receivable |
|
600 |
|
450 |
| Inventory |
|
900 |
|
525 |
| Land |
|
675 |
|
600 |
| Building |
|
900 |
|
900 |
| Less: Accumulated depreciation |
|
(300) |
|
(270) |
| Equipment |
|
2,850 |
|
2,250 |
| Less: Accumulated depreciation |
|
(525) |
|
(480) |
| Patent |
|
1,200 |
|
1,500 |
|
|
|
|
|
|
$ |
6,900 |
$ |
5,850 |
|
|
|
|
|
| Liabilities |
|
|
|
|
| Accounts payable |
$ |
750 |
$ |
450 |
| Accrued expenses payable |
|
300 |
|
225 |
| Lease liability-land |
|
150 |
|
0 |
| Shareholders' Equity |
|
|
|
|
| Common stock |
|
3,150 |
|
3,000 |
| Paid-in capital-excess of par |
|
750 |
|
675 |
| Retained earnings |
|
1,800 |
|
1,500 |
|
|
|
|
|
|
$ |
6,900 |
$ |
5,850 |
|
|
|
|
|
|
METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2013
($ in 000s) |
| Revenues |
|
|
|
|
| Sales revenue |
$ |
2,645 |
|
|
| Gain on sale of land |
|
90 |
$ |
2,735 |
|
|
|
|
|
| Expenses |
|
|
|
|
| Cost of goods sold |
$ |
600 |
|
|
| Depreciation expense-building |
|
30 |
|
|
| Depreciation expense-equipment |
|
315 |
|
|
| Loss on sale of equipment |
|
15 |
|
|
| Amortization of patent |
|
300 |
|
|
| Operating expenses |
$ |
500 |
|
1,760 |
|
|
|
|
|
| Net income |
|
|
$ |
975 |
|
|
|
|
|
|
| Additional information from the accounting records: |
| a. |
During 2013, equipment with a cost of $300,000 (90% depreciated) was sold. |
| b. |
The statement of shareholders' equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively.
|
| c. |
The land leased during the year is classified as an asset by the company. |
| Required: |
|
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
|