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 $ 420 $ 170
  Accountsreceivable 430 230
  Inventory 580 370
  Land 550 545
  Building 900 900
     Less: Accumulated depreciation (250) (210)
  Equipment 2,700 2,390
     Less: Accumulated depreciation (409) (380)
  Patent 1,400 1,500
$ 6,321 $ 5,515
  Liabilities
  Accountspayable $ 680 $ 480
  Accrued expensespayable 190 115
  Leaseliability—land 150 0
  Shareholders' Equity
  Common stock 3,160 3,000
  Paid-incapital—excess of par 500 490
  Retainedearnings 1,641 1,430
$ 6,321 $ 5,515

METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2016
($ in 000s)
  Revenues
     Sales revenue $ 2,608
     Gain on sale of land 50   $ 2,658
  Expenses
     Cost of goods sold $ 880
     Depreciation expense—building 40
     Depreciation expense—equipment 272
     Loss on sale of equipment 10
     Amortization of patent 100
     Operating expenses $ 550 1,852
  Netincome $ 806

Additionalinformation from the accounting records:
a. During 2016, equipment with acost of $270,000 (90% depreciated) was sold.
b.
The statement of shareholders’ equity reveals reductions of$170,000 and $425,000 for stock dividends and cash dividends,respectively.

Required:
Prepare the statement of cash flows for Metagrobolize Industriesusing the indirect method. (Enter your answers inthousands. (i.e., 10,000 should be entered as 10).) Amounts to bededucted should be indicated with a minus sign.)
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For year ended December 31, 2016
($ in 000s)
Adjustments for noncash effects:
Changesin operating assets and liabilities:

Answer & Explanation Solved by verified expert

4.0 Ratings (664 Votes)

Formula sheetABCDEFG23All numbers in 000s420162015Increase Decrease5Assets6Cash420170D6E67Accounts Receivable430230D7E78Inventory580370D8E89Land550545D9E910Building900900D10E1011Less Accumulated Depreciation250210D11E1112Equipment27002390D12E1213Less Accumulated Depreciation409380D13E1314Patent14001500D14E1415Total AssetsSUMD6D14SUME6E14D15E151617Liabilities and Shareholders Equities18Accounts Payable680480D18E1819Accrued Expenses 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)20162015Assets Cash$420$170 Accountsreceivable430230 Inventory580370 Land550545 Building900900 Less: Accumulated depreciation(250)(210) Equipment2,7002,390 Less: Accumulated depreciation(409)(380) Patent1,4001,500$6,321$5,515 Liabilities Accountspayable$680$480 Accrued expensespayable190115 Leaseliability—land1500 Shareholders' Equity Common stock3,1603,000 Paid-incapital—excess of par500490 Retainedearnings1,6411,430 $6,321$5,515METAGROBOLIZE INDUSTRIESIncome StatementFor the Year Ended December 31, 2016($ in 000s) Revenues Sales revenue$2,608 Gain on sale of land50 $2,658 Expenses Cost of goods sold$880 Depreciation expense—building40 Depreciation expense—equipment272 Loss on sale of equipment10 Amortization of patent100 Operating expenses$5501,852 Netincome$806Additionalinformation from the accounting records:a.During 2016, equipment with acost of $270,000 (90% depreciated) was sold.b.The statement of shareholders’ equity reveals reductions of$170,000 and $425,000 for stock dividends and cash dividends,respectively.Required:Prepare the statement of cash flows for Metagrobolize Industriesusing the indirect method. (Enter your answers inthousands. (i.e., 10,000 should be entered as 10).) Amounts to bededucted should be indicated with a minus sign.)METAGROBOLIZE INDUSTRIESStatement of Cash FlowsFor year ended December 31, 2016($ in 000s)Adjustments for noncash effects:Changesin operating assets and liabilities: