Comparative balance sheets for 2018 and 2017 and a statement of income for 2018 are given below for Metagrobolize Industries

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

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December 31, 2018 and 2017

($ in 000s)  2018 2017Assets        Cash$500  $305  Accounts receivable 590   310  Inventory 740   410  Land 750   735  Building 700   700  Less: Accumulated depreciation (200)  (185)  Equipment 3,100   2,870  Less: Accumulated depreciation (397)  (360) Patent 1,200   1,450   $6,983  $6,235  Liabilities        Accounts payable$840  $640  Accrued expenses payable 270   230  Lease liability—land 130   0  Shareholders’ Equity        Common stock 3,700   3,500  Paid-in capital—excess of par 550   540  Retained earnings 1,493   1,325   $6,983  $6,235  

METAGROBOLIZE INDUSTRIES

Income Statement

For the Year Ended December 31, 2018

($ in 000s)Revenues      Sales revenue$2,894    Gain on sale of land 90 $2,984 Expenses      Cost of goods sold$1,040    Depreciation expense—building 15    Depreciation expense—equipment 496    Loss on sale of equipment 20    Amortization of patent 250    Operating expenses 400  2,221 Net income   $763 

Additional information from the accounting records:

  1. Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2018.
  2. During 2018, equipment with a cost of $510,000 (90% depreciated) was sold.
  3. The statement of shareholders’ equity reveals reductions of $210,000 and $385,000 for stock dividends and cash dividends, respectively.

Required:

Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)