80.2K

Verified Solution

Link Copied!

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets $ 22 $ 65 Cash Accounts receivable 33 52 (4) (3) Less: Allowance for uncollectible accounts Dividends receivable 4 Inventory Long-term investment 45 40 18 14 Land 65 50 Buildings and equipment Less: Accumulated depreciation 259 270 (54) (70) $432 $379 Liabilities $ 21 $ 23 Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable 4 15 105 80 (2) (3) Less: Discount on bonds Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings Less: Treasury stock (at cost) 24 20 50 43 (6) $432 $379 DUX COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues $220 Sales revenue Dividend revenue 5 $225 Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense 130 29 Interest expense Loss on sale of building 189 Income tax expense 14 $ 36 Net income Additional information from the accounting records: a. A building that originally cost $28,000, and which was three-fourths depreciated, was sold for $4,000. b. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment. c. Property was acquired by issuing a 11%, seven-year, $15,000 note payable to the seller. d. New equipment was purchased for $17,000 cash. e. On January 1, 2018, bonds were sold at their $25,000 face value. f. 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. g. Cash dividends of $15,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $6,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. 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.)

Answer & Explanation Solved by verified expert

See Answer