Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 2$ 500 2$ 305 Accounts receivable 590 310 Inventory 740 410 Land 750 735 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation 700 700 (200) 3,100 (397) (185) 2,870 (360) Patent 1,200 1,450 $ 6,983 $ 6,235 Liabilities Accounts pavable 840 640

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 2$ 500 2$ 305 Accounts receivable 590 310 Inventory 740 410 Land 750 735 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation 700 700 (200) 3,100 (397) (185) 2,870 (360) Patent 1,200 1,450 $ 6,983 $ 6,235 Liabilities Accounts pavable 840 640

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
See similar textbooks
icon
Related questions
Question

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 500 305 Accounts receivable 590 310 740 Inventory Land 410 750 735 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation 700 700 (200) (185) 3,100 (397) 2,870 (360) 1,450 Patent 1,200 $ 6,983 $ 6,235 Liabilities Accounts payable 2$ 840 2$ 640 Accrued liabilities 270 230 Lease liability-land Shareholders' Equity 130 Common stock 3,700 3,500 Paid-in capital-excess of par Retained earnings 550 540 1,493 1,325 $ 6,983 $ 6, 235 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues $2,894 90 $2,984 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 $1,040 15 496 20 250 400 2,221 Net income $ 763 Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. b. During 2021, equipment with a cost of $510,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively. Required: Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Enter your answers in tho as 10). Amounts to be deducted should be indicated with a minus sign.) sands (i.e., 10,000 should be entered
Transcribed Image Text:Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash 500 305 Accounts receivable 590 310 740 Inventory Land 410 750 735 Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation 700 700 (200) (185) 3,100 (397) 2,870 (360) 1,450 Patent 1,200 $ 6,983 $ 6,235 Liabilities Accounts payable 2$ 840 2$ 640 Accrued liabilities 270 230 Lease liability-land Shareholders' Equity 130 Common stock 3,700 3,500 Paid-in capital-excess of par Retained earnings 550 540 1,493 1,325 $ 6,983 $ 6, 235 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues $2,894 90 $2,984 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 $1,040 15 496 20 250 400 2,221 Net income $ 763 Additional information from the accounting records: a. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. b. During 2021, equipment with a cost of $510,000 (90% depreciated) was sold. c. The statement of shareholders' equity reveals reductions of $210,000 and $385,000 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 tho as 10). Amounts to be deducted should be indicated with a minus sign.) sands (i.e., 10,000 should be entered
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS