The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are...

 

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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. DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 62 $ 35 Accounts receivable 61 65 Less: Allowance for uncollectible accounts (4) (3) Dividends receivable 5 4 Inventory 75 70 Long-term investment Land 45 40 90 60 Buildings and equipment Less: Accumulated depreciation 291 300 (62) $ 563 (90) $ 481 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable $ 41 $ 73 4 9 8 30 120 95 Less: Discount on bonds (5) (6) Return to question Salaries payable 4 Interest payable 9 Income tax payable Notes payable Bonds payable 8 30 120 95 Less: Discount on bonds (5) (6 ) Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings 24 20 137 82 Less: Treasury stock (10) $ 563 $ 481 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues $ 350 5 $ 355 Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense 195 28 8. Interest expense 10 Loss on sale of building 3 Income tax expense 27 272 Net income $ 83 < Prev. 12 of 12 Next > Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense 195 28 8 Interest expense 10 Loss on sale of building Income tax expense 3 27 272 Net income $ ৪3 Additional information from the accounting records: a. A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $9,000. b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. c. Property was acquired by issuing a 12%, seven-year, $30,000 note payable to the seller. d. New equipment was purchased for $39,000 cash. e. On January 1, 2021, 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 $14,000 were paid to shareholders. h. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $10,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) DUX COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: From customers 355 X From dividends received 4 V Cash outflows: To suppliers of goods (232) O To employees (30) O For interest (5) O For income taxes (31) X Net cash flows from operating activities $ 61 Cash flows from investing activities: Sale of building 9 Purchase of long-term investment (5) V Purchase of equipment (39) V Net cash flows from operating activities $ 61 Cash flows from investing activities: Sale of building Purchase of long-term investment (5) O Purchase of equipment (39) O Net cash flows from investing activities (35) Cash flows from financing activities: Sale of bonds payable 25 O Payment of dividends (14) O Purchase of treasury stock (10) O Net cash flows from financing activities 1 Net increase (decrease) in cash 27 Cash balance, January 1 35 O Cash balance, December 31 62 Noncash investing and financing activities: Cash balance, January 1 62 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. DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 62 $ 35 Accounts receivable 61 65 Less: Allowance for uncollectible accounts (4) (3) Dividends receivable 5 4 Inventory 75 70 Long-term investment Land 45 40 90 60 Buildings and equipment Less: Accumulated depreciation 291 300 (62) $ 563 (90) $ 481 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable $ 41 $ 73 4 9 8 30 120 95 Less: Discount on bonds (5) (6) Return to question Salaries payable 4 Interest payable 9 Income tax payable Notes payable Bonds payable 8 30 120 95 Less: Discount on bonds (5) (6 ) Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings 24 20 137 82 Less: Treasury stock (10) $ 563 $ 481 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues $ 350 5 $ 355 Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense 195 28 8. Interest expense 10 Loss on sale of building 3 Income tax expense 27 272 Net income $ 83 < Prev. 12 of 12 Next > Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense 195 28 8 Interest expense 10 Loss on sale of building Income tax expense 3 27 272 Net income $ ৪3 Additional information from the accounting records: a. A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $9,000. b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. c. Property was acquired by issuing a 12%, seven-year, $30,000 note payable to the seller. d. New equipment was purchased for $39,000 cash. e. On January 1, 2021, 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 $14,000 were paid to shareholders. h. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $10,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) DUX COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: From customers 355 X From dividends received 4 V Cash outflows: To suppliers of goods (232) O To employees (30) O For interest (5) O For income taxes (31) X Net cash flows from operating activities $ 61 Cash flows from investing activities: Sale of building 9 Purchase of long-term investment (5) V Purchase of equipment (39) V Net cash flows from operating activities $ 61 Cash flows from investing activities: Sale of building Purchase of long-term investment (5) O Purchase of equipment (39) O Net cash flows from investing activities (35) Cash flows from financing activities: Sale of bonds payable 25 O Payment of dividends (14) O Purchase of treasury stock (10) O Net cash flows from financing activities 1 Net increase (decrease) in cash 27 Cash balance, January 1 35 O Cash balance, December 31 62 Noncash investing and financing activities: Cash balance, January 1 62