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Problem 21-17 (Algo) Statement of cash flows; indirect method [LO21-4, 21-8] Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize is also provided. METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 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 liabilities 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 $4,880 METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $2,555 Gain on sale of land 30 $2,585 Expenses Cost of goods sold 800 Depreciation expense—building 20 Depreciation expense—equipment 160 Loss on sale of equipment 10 Amortization of patent 150 Operating expenses 600 1,740 Net income $845 Additional information from the accounting records: Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021. During 2021, equipment with a cost of $150,000 (90% depreciated) was sold. 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 for Metagrobolize Industries using the indirect method. (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

          Problem 21-17 (Algo) Statement of cash flows; indirect method [LO21-4, 21-8]

Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize is also provided.

METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2021 and 2020 ($ in thousands)

2021
2020

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 liabilities
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

METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2021 ($ in thousands)

Revenues
Sales revenue
$2,555
Gain on sale of land
30
$2,585

Expenses
Cost of goods sold
800
Depreciation expense—building
20
Depreciation expense—equipment
160
Loss on sale of equipment
10
Amortization of patent
150
Operating expenses
600
1,740

Net income
$845

Additional information from the accounting records:
Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021.
During 2021, equipment with a cost of $150,000 (90% depreciated) was sold.
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 for Metagrobolize Industries using the indirect method. (Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

Added by Salvador Y.

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