Comparative balance sheets for 2016 and 2015 and a statement of income for 2016 are given...

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Accounting

Comparative balance sheets for 2016 and 2015 and a statement ofincome for 2016 are given below for Metagrobolize Industries.Additional information from the accounting records of Metagrobolizealso is provided.

METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2016 and 2015
($ in 000s)
2016 2015
  Assets
  Cash $ 500 $ 250
  Accountsreceivable 550 290
  Inventory 700 400
  Land 700 650
  Building 800 800
     Less: Accumulated depreciation (250) (215)
  Equipment 3,000 2,750
     Less: Accumulated depreciation (355) (320)
  Patent 1,000 1,150
$ 6,645 $ 5,755
  Liabilities
  Accountspayable $ 800 $ 550
  Accrued expensespayable 250 220
  Leaseliability—land 150 0
  Shareholders'Equity
  Common stock 2,660 2,500
  Paid-incapital—excess of par 600 560
  Retainedearnings 2,185 1,925
$ 6,645 $ 5,755

METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2016
($ in 000s)
  Revenues
     Sales revenue $ 3,020
     Gain on sale of land 80   $ 3,100
  Expenses
     Cost of goods sold $ 1,000
     Depreciation expense—building 35
     Depreciation expense—equipment 440
     Loss on sale of equipment 20
     Amortization of patent 150
     Operating expenses 600 2,245
  Netincome $ 855

Additionalinformation from the accounting records:
a. During 2016, equipment with acost of $450,000 (90% depreciated) was sold.
b.
The statement of shareholders' equity reveals reductions of$200,000 and $395,000 for stock dividends and cash dividends,respectively.

Required:
Prepare the statement of cash flows of Metagrobolize for theyear ended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Enter your answers inthousands (i.e., 5,000 should be entered as 5). Amounts to bededucted should be indicated with a minus sign.)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2016
($ in 000s)
Cashinflows:
Cashoutflows:
$0
0
0
$0

Answer & Explanation Solved by verified expert

4.3 Ratings (909 Votes)

Statement of Cash Flows Operating activities Cash inflows From customers 2760 Cash outflows To suppliers of goods 1050 For operating expenses 570 Net cash flows from operating activities 1140 Investing See Answer

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Comparative balance sheets for 2016 and 2015 and a statement ofincome for 2016 are given below for Metagrobolize Industries.Additional information from the accounting records of Metagrobolizealso is provided. METAGROBOLIZE INDUSTRIESComparative Balance SheetsDecember 31, 2016 and 2015($ in 000s)20162015 Assets Cash$500$250 Accountsreceivable550290 Inventory700400 Land700650 Building800800 Less: Accumulated depreciation(250)(215) Equipment3,0002,750 Less: Accumulated depreciation(355)(320) Patent1,0001,150$6,645$5,755 Liabilities Accountspayable$800$550 Accrued expensespayable250220 Leaseliability—land1500 Shareholders'Equity Common stock2,6602,500 Paid-incapital—excess of par600560 Retainedearnings2,1851,925 $6,645$5,755METAGROBOLIZE INDUSTRIESIncome StatementFor the Year Ended December 31, 2016($ in 000s) Revenues Sales revenue$3,020 Gain on sale of land80 $3,100 Expenses Cost of goods sold$1,000 Depreciation expense—building35 Depreciation expense—equipment440 Loss on sale of equipment20 Amortization of patent150 Operating expenses6002,245 Netincome$855Additionalinformation from the accounting records:a.During 2016, equipment with acost of $450,000 (90% depreciated) was sold.b.The statement of shareholders' equity reveals reductions of$200,000 and $395,000 for stock dividends and cash dividends,respectively.Required:Prepare the statement of cash flows of Metagrobolize for theyear ended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Enter your answers inthousands (i.e., 5,000 should be entered as 5). Amounts to bededucted should be indicated with a minus sign.)METAGROBOLIZE INDUSTRIESStatement of Cash FlowsFor year ended December 31, 2016($ in 000s)Cashinflows:Cashoutflows:$000$0

METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
		2016		2015
Assets
Cash	$	500	$	250
Accountsreceivable		550		290
Inventory		700		400
Land		700		650
Building		800		800
Less: Accumulated depreciation		(250)		(215)
Equipment		3,000		2,750
Less: Accumulated depreciation		(355)		(320)
Patent		1,000		1,150

	$	6,645	$	5,755

Liabilities
Accountspayable	$	800	$	550
Accrued expensespayable		250		220
Leaseliability—land		150		0
Shareholders'Equity
Common stock		2,660		2,500
Paid-incapital—excess of par		600		560
Retainedearnings		2,185		1,925

	$	6,645	$	5,755

METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2016 ($ in 000s)
Revenues
Sales revenue	$	3,020
Gain on sale of land		80	$	3,100

Expenses
Cost of goods sold	$	1,000
Depreciation expense—building		35
Depreciation expense—equipment		440
Loss on sale of equipment		20
Amortization of patent		150
Operating expenses		600		2,245

Netincome			$	855

Additionalinformation from the accounting records:
a.	During 2016, equipment with acost of $450,000 (90% depreciated) was sold.
b.	The statement of shareholders' equity reveals reductions of$200,000 and $395,000 for stock dividends and cash dividends,respectively.