Comparative balance sheets for 2018 and 2017 and a statement of income for 2018
ID: 2521426 • Letter: C
Question
Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
Additional information from the accounting records:
A. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.
B. During 2018, equipment with a cost of $150,000 (90% depreciated) was sold.
C.The statement of shareholders' equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively.
Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s) 2018 2017 Assets Cash $ 405 $ 245 Accounts receivable 350 190 Inventory 500 275 Land 500 450 Building 900 900 Less: Accumulated depreciation (200 ) (180) Equipment 2,500 2,150 Less: Accumulated depreciation (325 ) (300 ) Patent 1,000 1,150 $ 5,630 $ 4,880 Liabilities Accounts payable $ 600 $ 400 Accrued expenses payable 150 130 Lease liability—land 130 0 Shareholders' Equity Common stock 3,100 3,000 Paid-in capital—excess of par 750 700 Retained earnings 900 650 $ 5,630 $ 4,880
Explanation / Answer
METAGROBOLIZE INDUSTRIES Statement of Cash Flows (Direct Method) For the Year ended Dec 31, 2018 ($ in 000s) Cash Flow From opearting Activities Cash recd from Customers 2,395.00 Cash Paid to Suppliers (825.00) Cash Paid For Operating Exp. (580.00) Cash Flow from Operating Activities 990.00 Cash flow from Investing Activities Sale of Land 110.00 Purchase of Equipments (500.00) Sale of Equipment 5.00 Cash Flow / (used) from Investing activities (385.00) Cash Flow from Financing Activities Cash dividend Paid (445.00) Cash Flow from Financing Activities (445.00) Net Increase / (Decrease) in Cash 160.00 Cash Beginning Balance - Dec 31, 2017 245.00 Cash Ending Balance - Dec 31, 2018 405.00 Calculation of Cash Recd. From Customers Sales Revenue 2,555.00 Add: Op. Accounts Receivables - Dec 31, 2017 190.00 Total Due to Customers 2,745.00 Less: Cls. Accounts Receivable - Dec 31, 2018 (350.00) Cash recd from Customers 2,395.00 Calculation of cash Paid to Suppliers Cost of Goods Sold 800.00 Add: Closing Inventory as on Dec 31,2018 500.00 Balance 1,300.00 Less: opening Inventory - Dec 31, 2017 (275.00) Purchases made during the year 1,025.00 Add: Opening Accounts Payable - Dec 31, 2017 400.00 Total amount Due 1,425.00 Less: Closing Accounts Payable - Dec 31, 2018 (600.00) Cash Paid to Suppliers 825.00 Calculation of Cash paid for Opearting Exp Operating Exp. 600.00 Add: Accrued Expenses Payable - Dec 31, 2017 130.00 Total Expenses Due 730.00 Less: Accrued Expenses Payable - Dec 31, 2018 (150.00) Cash Paid for Operating Expenses 580.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.