Comparative balance sheets for 2013 and 2012 and a statement of income for 2013
ID: 2492560 • Letter: C
Question
Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.
METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
2013
2012
Assets
Cash
$
520
$
305
Accounts receivable
590
310
Inventory
740
410
Land
750
735
Building
700
700
Less: Accumulated depreciation
(200)
(185)
Equipment
3,100
2,870
Less: Accumulated depreciation
(397)
(360)
Patent
1,200
1,450
$
7,003
$
6,235
Liabilities
Accounts payable
$
840
$
640
Accrued expenses payable
270
230
Lease liability—land
150
0
Shareholders' Equity
Common stock
3,700
3,500
Paid-in capital—excess of par
550
540
Retained earnings
1,493
1,325
$
7,003
$
6,235
METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
Revenues
Sales revenue
$
2,894
Gain on sale of land
90
$
2,984
Expenses
Cost of goods sold
$
1,040
Depreciation expense—building
15
Depreciation expense—equipment
496
Loss on sale of equipment
20
Amortization of patent
250
Operating expenses
$
400
2,221
Net income
$
763
Additional information from the accounting records:
a.
During 2013, equipment with a cost of $510,000 (90% depreciated) was sold.
b.
The statement of shareholders’ equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively.
c.
The land leased during the year is classified as an asset by the company.
Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
STATEMENT OF CASH FLOWS FOR THE YEAR 2013, DECEMBER 31.
CASH FLOWS FROM INVESTING ACTIVITIES:
SALE OF EQUIPMENT 31
SALE OF LAND ?????????
PURCHASE OF EQUIPMENT ????????
OTHER PARTS I HAVE, BUT THIS ONE I CAN’T SOLVE, PLEASE HELP ME IF YOU KNOW THE CORRECT ANSWER!!!!!! THANK YOU!!!
Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.
Explanation / Answer
STATEMENT OF CASH FLOWS FOR THE YEAR 2013, DECEMBER 31:
Cash Flows from Investing Activities:
Sale of Equipment (510000*(1-90%) - 20000
$ 31,000
Sale of Land 150000 - (750000 -735000)
$ 135000
Equipment purchased = (3100000-2870000)+510000
$ (740,000)
$ (574,000)
STATEMENT OF CASH FLOWS FOR THE YEAR 2013, DECEMBER 31:
Cash Flows from Investing Activities:
Sale of Equipment (510000*(1-90%) - 20000
$ 31,000
Sale of Land 150000 - (750000 -735000)
$ 135000
Equipment purchased = (3100000-2870000)+510000
$ (740,000)
$ (574,000)
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