70.2K

Verified Solution

Link Copied!

Check my work mode: This shows what is correct or incorrect for the work you have completed 2 The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company Additional information from Dux's accounting records is provided also. 2021 2020 DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation 9.72 41 (3) 6 95 27 95 191 (34) $ 27 56 (2) 5 90 24 75 220 (60) $435 $493 $ 76 583 10 5 10 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Lesat Discount on bonds Shareholders' Equity Common stock Paid-in capical-excess of par Retained earnings Leat Treasury stock 999 20 o 55 (3) (2) 210 24 74 (12) 5493 200 20 50 0 5435 UX COMPANY Income Statement For the Year Ended December 31, 2021 in thousanda) Revenes 3390 a Most tement of Cash Flows Saved Check my work mode : This shows what is correct or incorrect for the work you have completed se $ 270 6 $ 276 Revenues Sales revenue Dividend revenge Expenses Coat of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loas on sale of building Income tax expense Net inom 155 39 10 1 8 18 235 $ 42 Additional information from the accounting records: a. A building that originally cost $48,000, and which was three-fourths deprecated, was sold for $8.000. b. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment c Property was acquired by issuing a 10%, seven-year, $20,000 note payable to the seller d. New equipment was purchased for $22,000 cash. e On January 1, 2021, bonds were sold at their $25,000 face value 1. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time. 9. Cash dividends of $11,000 were paid to shareholders. h. On November 12. 1000 shares of common stock were repurchased as treasury stock at a cost of $11,000 Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (ie., 10,000 should be entered os 10). Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. DUX COMPANY Statement of Cash Flows DUX COMPANY Statement of CostFlows For the year ended December 31, 2021 15 in thousands Cash flows from operating activities Cash inflows: From customers $ 285 From dividends received 5 > >> Cash outflows To employees To suppliers of goods (42) $ 248 Net cash flows from operating activities Cash flows from investing activities: Purchase of long-term investment Sale of building Purchase of equipment (3) OOO 8 OOO (22) Net cash flows from investing activities Cash flows from financing activities: Purchase of treasury stock Payment of dividends (11) (11) lo 2 $ 248 Net cash flows from operating activities Cash flows from investing activities: Purchase of long-term investment Sale of building Purchase of equipment (3) 90 (22) Net cash flows from investing activities Cash flows from financing activities: (17) Purchase of treasury stock Payment of dividends Sale of bonds payable lolo (11) (11) 25 3 Nel cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired land $ 0 $ 20

Answer & Explanation Solved by verified expert

See Answer