Question

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

DUX COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
2013 2012
Assets 
Cash $ 33 $ 20 
Accounts receivable 48 50 
Less: Allowance for uncollectible accounts (4) (3) 
Dividends receivable 3 2 
Inventory 55 50 
Long-term investment 15 10 
Land 70 40 
Buildings and equipment 225 250 
Less: Accumulated depreciation (25) (50) 
$ 420 $ 369 
Liabilities 
Accounts payable $ 13 $ 20 
Salaries payable 2 5 
Interest payable 4 2 
Income tax payable 7 8 
Notes payable 30 0 
Bonds payable 95 70 
Less: Discount on bonds (2) (3) 
Shareholders' Equity 
Common stock 210 200 
Paid-in capital—excess of par 24 20 
Retained earnings 45 47 
Less: Treasury stock (8) 0 
$ 420 $ 369 
DUX COMPANY
Income Statement
For Year Ended December 31, 2013
($ in 000s)
Revenues 
Sales revenue $ 200 
Dividend revenue 3 $ 203 

Expenses 
Cost of goods sold 120 
Salaries expense 25 
Depreciation expense 5 
Bad debt expense 1 
Interest expense 8 
Loss on sale of building 3 
Income tax expense 16 178 
Net income $ 25 

Additional information from the accounting records:
a. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
c. Property was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.
d. New equipment was purchased for $15,000 cash.
e. On January 1, 2013, $25,000 of bonds were sold at 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 $13,000 were paid to shareholders.
h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)



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  • CreatedAugust 26, 2013
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