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can u answer all of them for me? Thanks very much! Comparative balance sheets fo

ID: 2490320 • Letter: C

Question

can u answer all of them for me? Thanks very much!

Comparative balance sheets for 2016 and 2015 and a statement of income for 2016 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2016 and 2015 (S in 000s) 2016 2015 Assets Cash Accounts receivable Inventory Land Building $1,230 $ 555 630 705 780 1,260 1,260 (660) (450) 3,210 2,430 (885) (660) 1,560 2,040 960 1,260 1,035 Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent $ 8,970 $7,290 Liabilities Accounts payable Accrued expenses payable Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained eamings $ 1,110 S 630 495 660 510 3,330 3,180 945 2,250 2,040 1,110 $8,970 $ 7,290

Explanation / Answer

Answer

Cash Flow Statement (Metagrobolize Industries) for year ended December 31, 2016

Figures in $

in 000s

Particulars

Amount

Cash flow from Operating activity

Net income

1126

Gain on sale of land

-108

Depreciation expense -building

210

Depreciation expense - equipment

657

Loss on sale of equipment

36

Amortisation of patent

480

Increase in accounts receivable

-330

(630-960)

Increase in Inventory

-555

(705-1260)

Increase in Accounts payable

480

(1110-630)

Increase in Accrued Expenses payable

165

(660-495)

Cash flow from operating activity

a

2161

Cash flow from investing activity

Purchase of equipment

-1260

(See ledger account)

Sale of equipment

12

Book value(480-432) - loss(36)

Net addition of land adjusted for gain on sale

-147

(See ledger account)

Cash Flow from Investing activity

b

-1395

Cashflow from Financing activity

Lease liability Land

510

Cash dividend

-601

Cash flow from financing activity

c

-91

Net cash addition during the Year

(a+b+c)

675

Opening cash Balance

d

555

Closing cash balance

e

1230

Cash inflow during the year     (e-d)

675

Ledger Accounts (All Figures are in 000s)

Land A/c

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

780

Net addition

147

(balancing figure)

Closing balance

1035

Gain on sale

108

1035

1035

Building A/c

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

1260

Closing balance

1260

1260

1260

Equipment

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

2430

Sale

480

Purchase

1260

Balancing figure

Closing balance

3210

3690

3690

Accumulated depreciation (Building)

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

450

Depreciation

210

Closing balance

660

Balancing figure

660

660

Accumulated depreciation (Equipment)

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

660

On equipment sold

432

(480*0.9)

Depreciation

657

(Balancing figure)

Closing balance

885

1317

1317

Patent

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

2040

Amortisation

480

Balancing figure

Closing balance

1560

2040

2040

Common stock

Figures in $

Dr

Cr

Particulars

Amount

Particulars

Amount

Opening balance

3180

Stock Dividend

150

Balancing figure

Closing balance

3330

3330

Paid in capital in excess of par

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

945

Stock dividend

165

Closing balance

1110

Balancing figure

1110

1110

Retained earnings

Dr

Cr

Figures in $

Particulars

Amount

Particulars

Amount

Opening balance

2040

Stock Dividend

315

Cash dividend

601

Net income

1126

Closing balance

2250

3166

3166

Cash Flow Statement (Metagrobolize Industries) for year ended December 31, 2016

Figures in $

in 000s

Particulars

Amount

Cash flow from Operating activity

Net income

1126

Gain on sale of land

-108

Depreciation expense -building

210

Depreciation expense - equipment

657

Loss on sale of equipment

36

Amortisation of patent

480

Increase in accounts receivable

-330

(630-960)

Increase in Inventory

-555

(705-1260)

Increase in Accounts payable

480

(1110-630)

Increase in Accrued Expenses payable

165

(660-495)

Cash flow from operating activity

a

2161

Cash flow from investing activity

Purchase of equipment

-1260

(See ledger account)

Sale of equipment

12

Book value(480-432) - loss(36)

Net addition of land adjusted for gain on sale

-147

(See ledger account)

Cash Flow from Investing activity

b

-1395

Cashflow from Financing activity

Lease liability Land

510

Cash dividend

-601

Cash flow from financing activity

c

-91

Net cash addition during the Year

(a+b+c)

675

Opening cash Balance

d

555

Closing cash balance

e

1230

Cash inflow during the year     (e-d)

675

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