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 $580 $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
$ 6,880 $5,850
Liabilities
Accounts payable $ 750 $ 450
Accrued liabilities 300 225
Lease liability—land 130 0
Shareholders' Equity
Common stock 3,150 3,000
Paid-in capital—excess of par 750 675
Retained earnings 1,800 1,500
$ 6,880 $ 5,850
METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
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:
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 $300,000 (90% depreciated) was sold.
The statement of shareholders' equity reveals reductions of $225,000 and $450,000 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 thousands (i. e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)