Comparative balance sheens fee 2010 and 2015 and a statement of income for 2010

Question

Comparative balance sheens fee 2010 and 2015 and a statement of income for 2010 are given belos for Metagrobolize Industries. Additional information fromm the accounting records of Metagrobolze alzo provided Comparative Balance Sheet December 31. 2018 and 2015 ($n000 2010 2015 Cash Accounts receivsble Inventory 3 430 220 530 230 Building 800 800 200) (170 2,950 Equipment 2.690 (334) (300) 1,900 2.000 50,035 Accounts payable Accrued expenses payable Shareholders Equity Common sok Paid-in capital cs of par Retained earnings 3 780 630 240 215 2.840 2200 0004 3,100 2 845 7,510 8.535 Income Stacement For the Year Ended December 31. 2016 s in 000a) 3,123 Salks rewenua Gain on sale of land 75 $3.199 Cost of goods sold 3 500 20 Loss on sale of equipment Amortizstion of patert Operating excenses 100 S 800 2.142 Net inco $1,000 froe the accounting recods During 2018, equipment with 8 cost of 3420.000 (90% deprecated) "85 501d The ststement of shareholders equity reveals reductions of $196,000 and 3400,000 for stock dividanda and cash dividanda, reapactivahy

Explanation / Answer

METAGROBOLIZE INDUSTRIES Cash flow statement for the year ending December 31, 2016 Cash flow from operations:    Net income 1056    Adjustments for converting into cash:      Depreciation expense - building 30      Depreciation expense - equipment 412      Amortization of patent 100      Gain on sale of land -75      Loss on sale of equipment 20      Accounts receivable -250      Inventory -285      Accounts payable 150     Accrued expenses payable 25 Cash flow from operations 1183 Cash flow from investing decisions:     Sale of land   * 145     Sale of equipment   ** 22     Purchase of equipment   *** -680 Cash flow from investing activities -513 Cash flow from investing activities     payment of cash dividends -400 Cash flow from financing activities -400 Net cash flow 270 Beginning cash balance 220 Ending cash balance 490 Workings: Sale of land Beginning balance A 620 Additions B 150 Final value (B + C) C 770 Ending balance D 700 Value of land sold (C - D) E 70 Gain on sale F 75 Sale value of building (E + F) * G 145 Sale of equipment Cost of equipment sold A 420 Depreciation on this (90%) B 378 Book value of equipment sold (A - B) C 42 Loss on sale of equipment D 20 Sale value of equipment (C - D)   ** E 22 Purchase of equipment Beginning balance of cost of equipment A 2690 Cost of equipment sold B 420 Balance ( A - B) C 2270 Ending balance of cost of equipment D 2950 Value of equipment purchased (D - E ) *** F 680

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