Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Metagrobolize Industries.
Additional information from the accounting records of Metagrobolize also is provided.
METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
Assets
Cash
Accounts receivable
Inventory
Land
Right-of-use asset-land
Building
Less: Accumulated depreciation
Equipment
Less: Accumulated depreciation
Patent
Liabilities
Accounts payable
Accrued liabilities
Lease liability-land
Common stock
Paid-in capital-excess of par
Retained earnings
2024
2023
\$ 400
\$ 205
390
210
540
360
430
515
150
8
900
900
(300)
(270)
2,600
2,270
(367)
(340)
1,200
1,450
\$ 5,943
\$ 5,300
\$ 670
\$ 390
170
130
130
8
3,140
3,000
750
730
1,083
1,050
\$ 5,943
\$ 5,300
METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues
Sales revenue
Gain on sale of land
\$ 2,489
40
\$ 2,529
Expenses
Cost of goods sold
\$ 840
Depreciation expense-building
30
Depreciation expense-equipment
216
Loss on sale of equipment
15
Amortization of patent
250
Operating expenses
550
1,901
\$ 628
Net income
Additional information from the accounting records:
a. On December 31, 2024, acquired the use of land with a finance lease. Annual payments of \$20,000 on the liability are paid at the
end of each year beginning in 2024.
b. During 2024, equipment with a cost of \$210,000 (90% depreciated) was sold.
c. The statement of shareholders' equity reveals reductions of \$160,000 and \$435,000 for stock dividends and cash dividends,
respectively.
Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2024. Present cash flows from operating
activities by the direct method.
Note: 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.
METAGROBOLIZE INDUSTRIES
Statement of Cash Flows
For the year ended December 31, 2024
($ in thousands)
Cash flows from operating activities:
Cash inflows:
Cash outflows:
Net cash flows from operating activities
Cash flows from investing activities:
Net cash flows from investing activities
Cash flows from financing activities:
Net cash flows from financing activities
Net increase (decrease) in cash
Cash balance, January 1
Cash balance, December 31
Noncash investing and financing activities: