Question

please do direct method

Problem METAGROBOLIZE INDUSTRIES Dec 31 2017 Dec 31 2018 Change Balance Sheet Assets: Cash Accounts receivable Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent 225 150 375 75 375 450 525 600 900 (270) 2.250 (480) 1,500 5.850 600 600 900 675 900 (300) 2.850 (525) 1,200 6.900 (30) 600 (45) (300) 1050 Bog 150 67504 = 450 225 750 300 300 75 67507 Liabilities: Accounts payable Accrued expenses Lease liability-land Shareholders' Equity: Common stock Paid-in capital - excess of par Retained earnings 75+90 2185 3,000 675 1,500 5,850 3,150 750 1,800 6,900 150 75 300 1,050 795 2,645 280034 Income Statement Revenues Sales revenue Gain on sale of land Expenses: Sylt 4P Cost of goods sold Depreciation expense-build. hoffer. Depreciation expense-equip. 30 M Loss on the sale of equipment US Amortization of patent 15 cost Operating expenses Net income 306 300-8.40 (600) (30) (315) (15) (300) 1500) 975 Additional information: a. During 2018, equipment with a cost of $300.000 (90% depreciated) was sold. b. The statement of shareholders' equity includes reductions of $225.000 and $450,000 for stock dividends and cash dividends, respectively.

Prepare a statement of cashflow direct method

Answer 1

Metagrobolize Industries (Amount in '000$) 300 Statement of Cashflows For the period ending 31.12.2018 Cashflow from Operating Activity Collection from customers (2645+450-600) Payments to Creditors (600+900-525+450-750) Payments of Expenses (500+225-300) Net cash flows from operating activities Bal. Cash 2495 -675 -425 Equipment 2250 Sale 900 Bal. 3150 2850 3150 1395 Sale Accum. Depre 270 Bal. Depreciation 418 Cash flows from investing activities: Purchase of equipment Sale of land Sale of equipment Net cash flows from investing activities 380 524 -900 165 Bal. 15 -720 Equip. 270 -450 Sale of Equip. 300 Accum Depre Loss on sale Cash 300 Cash flows from financing activities: Payment of cash dividends Net cash flows from financing activities Net Increase in Cash Beginning Cash Balance Ending Cash Balance 15 15 300 -450 225 375 600 165 Land 600 Sale 150 90 Bal. Bal. Lease Liab Gain on sale Noncash investing and financing activities: Land acquired by lease 150 675 840 840