Prepare statement of cash flows for metagrobolize industries

Assignment Help Financial Accounting
Reference no: EM13214764

Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.

METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
2013 2012
Assets
Cash $ 425 $ 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

$ 5,650 $ 4,880

Liabilities
Accounts payable $ 600 $ 400
Accrued expenses payable 150 130
Lease liability-land 150 0
Shareholders' Equity
Common stock 3,100 3,000
Paid-in capital-excess of par 750 700
Retained earnings 900 650

$ 5,650 $ 4,880


METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
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:
a. During 2013, equipment with a cost of $150,000 (90% depreciated) was sold.
b. The statement of shareholders' equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively.
c. The land leased during the year is classified as an asset by the company.

Required:
Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Reference no: EM13214764

Questions Cloud

Graph the two-period budget constraint for consumption : The government modifies the consumption tax somewhat so that the first $20k of consumption in each period is tax free. Now graph the budget constraint.
What was amount of gain or loss on retirement of bonds : The bonds were dated January 1, 20011. Interest is paid semiannually on January 1 and July 1. On April 1, Hanson purchased 1/2 of the bonds on the open market at 99 plus accrued interest and canceled them.
Explain what is the equivalent annual cost of the washer : What is the equivalent annual cost of the washer, if the firm uses straight-line depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Describe the levels of uncertainty : Describe the levels of uncertainty and complexity for the project and determine what the project manager should communicate to the customers about the project unknowns.
Prepare statement of cash flows for metagrobolize industries : Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also. METAGROBOLIZE INDUSTRIES
Explain what is the future value of investment cash flows : If the appropriate interest rate is 8.16 percent, what is the future value of these investment cash flows six years from today?
Determine whether the good was an elastic or inelastic good : If you were to be a retailer, would you want to sell elastic or inelastic goods? State your reasons in your answer.
Who in the ethiopian society has the most difficult time : Could not Ethiopia become a world class producer and exporter of goods? How would Ethiopia compare with Japan? Japan is a country relatively POOR in natural resources, yet it is an economic world powerhouse. What are the differences between the tw..
How the changes will affect the outcome of formula : In cost accounting determining the relationships between cost, volume and profit are very important. This assignment will have you use scenarios and goal seek to calculate breakeven and changes in cost and volume.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Explain as ms almeida the options available

The division would be transferring its product internally to another division that uses the part as input to its product. Explain, as Ms. Almeida, the options available other than market price.

  Discuss the pros and cons of this structure

Do you believe that it is in the best interest of the nation to allow such a powerful organization to be INDEPENDENT from voters and policymakers? Discuss the pros and cons of this structure.

  Determine the earnings per share on common stock

Determine the earnings per share on common stock, assuming income before bond interest and income tax is $2,000,000 and enter answers in dollars and cents, rounding to the nearest whole cent.

  Illustrate what was the amount of the projected benefit

The actuary’s discount rate was 3%. Illustrate what was the amount of the projected benefit obligation at year-end?

  Give the entry for the sale of the bonds

A. Give the entry for the sale of the bonds. B. Give the entry to record the first interest payment.

  Which measurements currently reported in balance sheets

Which measurements currently reported in balance sheets are not consistent with the physical capital maintenance concept? Give examples.

  How city government is spending their tax dollars

Consider the statement by Mayor Jerry Abramson about the Louisville Checkbook: With a few clicks, Louisville, KY residents can now see exactly how city government is spending their tax dollars Do you agree or disagree with this statement? Defend y..

  Evaluate a tolerable difference for analytical procedure

Evaluate a tolerable difference for your analytical procedure.

  Analyzes the financial strengths and weaknesses of company

Calculation of at least five significant investor ratios for each of the five years analyzed. Analyzes the financial strengths and weaknesses of the company examined.

  Illustrate what is the total interest cost of the bonds

Knollwood Corporation issued $300,000 of 30-year, 8 percent bonds at 106 on one of its semiannual interest dates. The straight-line method of amortization is to be used. Illustrate what is the total interest cost of the bonds?

  How many exemptions should margaret and john claim on a join

Their daughter is not a full-time student. How many exemptions should Margaret and John claim on a joint return for 2011?

  What can you conclude from this exercise

compute the net benefits using a discount rate of 6 percent ,repeat using a discount rate of 12 percent, what can you conclude from this exercise?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd