Question

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. 6.66 points 2017 Ask METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000 s) 2018 Assets Cash $ 510 Accounts receivable 610 Inventory 760 Land 600 Building 700 Less: Accumulated depreciation (250) Equipment 3,150 Less: Accumulated depreciation (418) Patent 1,300 $ 6,962 Print $ 265 320 415 525 700 (220) 2,930 (380) 1,600 $ 6, 155 References $ $ 860 280 130 710 235 0 Liabilities Accounts payable Accrued expenses payable Lease liability-land Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 3,650 550 1,492 $ 6,962 3,500 485 1, 225 $ 6,155

Answer 1

Please refer to the image attached for the answer.

Increase in share capital is not considered, increase was due to stock dividend.

ULE As per Direct method Cash flow from operating Activity. Cash received from Customer Copening Accounts receivable + Credit sales -closing Accombs receivable) le, [320+ 3101 - 610]>> 2611 Amout in ooo 281 (1255) (355) 120L to (460) Cash povid to Suppliers [opening payable + cost of goods soldt closing Inventory - opening Inventory - closing payable) Hattabh 415+760 {flot 1060+760-415-860) operatiry expense parid [openiny accrued expense payable + Operating ere penge - closiny accrued acpense pauyable) 1 [aso 1400 (23 +400-280] Net cash generated from operation . (A) cash flow from Investing Activity proceeds from Sule of land. [opening balance + hease value [130+20+ gain on sale - closiny balance] 525+150+95-600 Pinchase of equipment (opening balance - equipment sold [book value] closing balance ° 29 30 – 540-3150 I sale proceeds from eg wipment [Book value= 540 x 40% - 54000 sold at a loss of a $20 Net cash used in Investing Activity (B) Kash flow from financiry Activity Finance lease pand Cash dividend panid Wet cash generated from finance Activity (c) Net Increase in cash & Cash equivalents [At B+c] Add: - Cush and Cash equivalent at the begining Cash and Cash equivalent at the end 34. 656) (205 (360) (400) au5 265 510