Problem 215 Statement of cash flows direct method LO213 218

Problem 21-5 Statement of cash flows; direct method [LO21-3, 21-8] Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries Additional information from the accounting records of Metagrobolize also is provided METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ( in 000s) 2018 2017 Assets Cash Accounts receivable Inventory Land Building $530255 340 425 650 800 600 900 900 (200) (175) 3,050 Less: Accumulated depreciation Equipment 3,250 Less: Accumulated depreciation (420) 1500 1,650 $7,570 6,580 Patent Liabilities Accounts payable Accrued expenses payable Lease liability-land shareholders\' Equity Common stock Paid-in capital-excess of par Retained earnings $ 900600 245 300 130 3,620 550 3,500 445 2,070 1,\'90 $7,570 6,580

Solution

Workings

Metagrobolize Industries
Statement of Cash Flows
For year ended December 31, 2018 ($ in 000)
Cash flows from operating activities:
Cash Inflows
From Customers	2730
Cash Outflow
For Operating Expense	-295
To Supplies of Goods	-1175
Net cash flow from Oparting Activites		1260
Cash flow from Investing Activities
Purchase of equipment	-800
Sale of land	150
Sale of equipment	35
Net cash flows from investing activities		-615
Cash flows from financing activities:
Payment of cash dividends	-370
Net cash flows from financing activities		-370
Net increase in cash		275
Cash balance, January 1		255
Cash balance, December 31		530
Noncash investing and financing activities:
Land acquired by capital lease		130