Required prepare the statement of cash flows of megatroboliz

Problem 21-5 Statement of cash Bows direct method [LO21-3, 11-8 Comparative balance sheets for 2018 and 2017 and a st temet ofinor, for 2018 zeprm below ??r Mtgoklield thes Additional infornution from the accounting records of Metauobolize also is providesd Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) Casth Accounts receivable $ 400 170 430 580 550 230 370 Land 900 210) 2,390 (380) Less: Accumulated depreciation (250) 2,700 (409) Patent $ 6,301 5,515 Liabilities Accounts payable Accrued expenses payable Lease liability-Ind Shareholders\' Equity Common stock Paid-in capital excess of par Ratained earnings S 680$ 480 115 190 130 3,160 500 3,000 I 1,641 1,430 S 6,301 5,515 Income Statement For the Year Ended December 31, 2018 (S in 000s) Revenues Sales revemue Gain ? sale ofland $2,608 50 $2,6s Cost of goods sold Depreciation expensa-equipment Less on sale of equipment Amortization of patert Operating expenses $ 880 40 272 10 100 550 1852 S 806 Net income Adaitional tnformation from the accounting record a Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018 During 201S, equipment with a cost of S270.000 (90% deprecated) was sold. c. The statement of shareholders\' equity reveals reductions of $170,000 and $425,000 for stock divideands and cash dividends, respectively Required

Solution

METAGROBOLIZE INDUSTRIES Working Note Cash Flow statement-Direct Method 1 Cash received from customers: For the Year Ended December 31, 2018 Opening Accounts recevable 230 Cash flows from operating activities $(in 000) $(in 000) Add: sales 2608 Cash received from customers 1 $    2,408 2838 Cash paid to suppliers 2         (890) Less: Ending Accounts Receivable -430 Cash paid for operating expenses 3         (475) Cash received from customers 2408 Net cash provided (used) by operating activities $    1,043 Cash flows from investinq activities 2 Cash paid to suppliers: Sale of land           195 (545-(550-150)+50) Opening Accounts payable 480 Purchase of land-DFL           (20) Add: cost of goods sold 880 Sale of equipment             17 (270-90% x 270-10) Add: increase in inventory 210 Purchase of equipment         (580) (2700+270-2390) 1570 Net cash provided (used) by investing activities         (388) Less: Ending Accounts Payable -680 Cash flows from financing activities Cash paid to suppliers 890 Issue of common stock           170 (3160+500-3000-490) dividend paid         (595) (1430+806-1641) 3 Cash paid for operating expenses: Net cash provided (used) by financing activities         (425) Opening accrued expenses payable 115 Net increase (decrease) in cash $       230 Add: operating expenses 550 Cash at beqinning of year           170 665 Cash at end of year $       400 Less: Ending accrued expenses payable -190 Cash paid for operating expenses 475