Problem 21-5 Statement of cash flows; direct method [LO21-3, 21-8] Comparative b

Question

Problem 21-5 Statement of cash flows; direct method [LO21-3, 21-8] 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 METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ( in 000s) 2018 2017 Assets Cash Accounts receivable Inventory Land Building $530255 340 425 650 800 600 900 900 (200) (175) 3,050 Less: Accumulated depreciation Equipment 3,250 Less: Accumulated depreciation (420) 1500 1,650 $7,570 6,580 Patent Liabilities Accounts payable Accrued expenses payable Lease liability-land shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings $ 900600 245 300 130 3,620 550 3,500 445 2,070 1,'90 $7,570 6,580

Explanation / Answer

Workings

Metagrobolize Industries Statement of Cash Flows For year ended December 31, 2018 ($ in 000) Cash flows from operating activities: Cash Inflows From Customers 2730 Cash Outflow For Operating Expense -295 To Supplies of Goods -1175 Net cash flow from Oparting Activites 1260 Cash flow from Investing Activities Purchase of equipment -800 Sale of land 150 Sale of equipment 35 Net cash flows from investing activities -615 Cash flows from financing activities: Payment of cash dividends -370 Net cash flows from financing activities -370     Net increase in cash 275 Cash balance, January 1 255 Cash balance, December 31 530 Noncash investing and financing activities: Land acquired by capital lease 130

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