Problem 21-16 Statement of cash flows; indirect method [LO21-4, 21-8]

The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Dux Company. Additional information from Duxs accounting records is provided also.

DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
		2016		2015
Assets
Cash	$	69	$	38
Accounts receivable		62		83
Dividends receivable		6		4
Inventory		91		68
Long-term investment		51		28
Land		145		74
Buildings and equipment		207		286
Less: Accumulated depreciation		(43)		(86)
	$	588	$	495
Liabilities
Accounts payable	$	31	$	56
Salaries payable		6		9
Interest payable		8		5
Income tax payable		25		31
Notes payable		71		0
Bonds payable		131		88
Less: Discount on bonds		(20)		(39)
Shareholders' Equity
Common stock		228		218
Paid-in capitalexcess of par		40		38
Retained earnings		94		89
Less: Treasury stock		(26)		0
	$	588	$	495

DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues
Sales revenue	$	366
Dividend revenue		8	$	374
Expenses
Cost of goods sold		138
Salaries expense		43
Depreciation expense		41
Interest expense		26
Loss on sale of building		5
Income tax expense		35		288
Net income			$	86

Additional information from the accounting records:

a.	A building that originally cost $112,000, and which was three-fourths depreciated, was sold for $23,000.
b.	The common stock of Byrd Corporation was purchased for $23,000 as a long-term investment.
c.	Property was acquired by issuing a 10%, seven-year, $71,000 note payable to the seller.
d.	New equipment was purchased for $33,000 cash.
e.	On January 1, 2016, $43,000 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 $12 per share at that time.
g.	Cash dividends of $69,000 were paid to shareholders.
h.	On November 52,000 shares of common stock were repurchased as treasury stock at a cost of $26,000.

Required:

Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).))

Statement of Cash Flows For year ended December 31, 2016 ($ in 000s) Cash flows from operating activities: Net income 374 8 Adjustments for noncash effects: Amortization of discount Depreciation expense Loss on sale of building Changes in operating assets and liabilities: Increase in dividends receivable Decrease in accounts payable Decrease in accounts receivable Increase in inventory Decrease in salaries payable Increase in interest payable Decrease in income tax payable Net cash flows from operating activities 374 Cash flows from investing activities: Sale of building Purchase of long-term investment Purchase of equipment Net cash flows from investing activities %24 Net cash flows from investing activities Cash flows from financing activities: Sale of bonds payable Payment of cash dividends Purchase of treasury stock Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired land