Required: prepare the statement of cash flows of megatrobolize for the year ende

Question

Required: prepare the statement of cash flows of megatrobolize for the year ended December 31,2018. Present cash flows from operating activities by the direct method
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

Explanation / Answer

Cash Flow Statement :-

Cash Flow from Operating Activities :- $ in 000s $ in 000s Cash Inflows - From Customber (2608+230-430) 2408 Cash Outflows - Less : Suppliers of Goods (880+370-580+680-480) (870) Less : Operating Expenses (550+190-115) (625) Net Cash Flow from operating activities 913 913 Cash Flow from Investing Activities :- Purchase of Land (5 + 20) (25) Sale of Equipment (27 - 10) 17 Sale of Patent 100 Purchase of Equipment (310) Net Cash Flow from investing Activities (218) (218) Cash Flow from Financing Activities :- Dividend Paid (425) Shares Purchase (170) Lease Liability 130 Net Cash Flow from Financing Activities (465) (465) Net Cash 230 Add : Beginning Balance of Cash 170 Ending Balance of Cash 400

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