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P21-5 Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. EXCEL TEMPLATE

P21-5 Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries.

P21-5 Statement of cash flows; direct method
 
P21-5 Comparative balance sheets for 2013 and 2012 and a statement of income for 2013 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
 
Additional information from the accounting records:
a. During 2013, equipment with a cost of $300,000 (90% depreciated) was sold.
b. The statement of shareholders' equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively.

Required:
Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)
 
SOLUTION PREVIEW (The Solution is done in EXCEL TEMPLATE)
 
Problem 21-5
                                                             Metagrobolize Industries
                                            Spreadsheet for the Statement of Cash Flows
 
Dec.31
2012
Changes
Dec. 31
2013
 
Debits
 
Credits
Balance Sheet
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Cash
375
(14)
225
 
 
 
600
Accounts receivable
450
(1)
150
 
 
 
600
Inventory
525
(4)
375
 
 
 
900
Land
600
(2)
150
X
(3)
75
675
Building
900
 
 
 
 
 
900

Please download EXCEL TEMPLATE for Solution

File name: P21-5-Comparative-balance1.xls File type: application/vnd.ms-excel Price: $10