Question: The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Duxs

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Duxs accounting records is provided also.

DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
2018 2017
Assets
Cash $ 47 $ 27
Accounts receivable 51 61
Less: Allowance for uncollectible accounts (3 ) (2 )
Dividends receivable 5 4
Inventory 69 57
Long-term investment 29 17
Land 96 50
Buildings and equipment 218 264
Less: Accumulated depreciation (32 ) (64 )
$ 480 $ 414
Liabilities
Accounts payable $ 20 $ 34
Salaries payable 5 8
Interest payable 7 6
Income tax payable 14 16
Notes payable 46 0
Bonds payable 109 77
Less: Discount on bonds (9 ) (17 )
Shareholders' Equity
Common stock 217 207
Paid-in capitalexcess of par 28 27
Retained earnings 58 56
Less: Treasury stock (15 ) 0
$ 480 $ 414

DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue $ 261
Dividend revenue 6 $ 267
Expenses
Cost of goods sold 127
Salaries expense 32
Depreciation expense 19
Bad debt expense 1
Interest expense 15
Loss on sale of building 3
Income tax expense 24 221
Net income $ 46

Additional information from the accounting records:

A building that originally cost $68,000, and which was three-fourths depreciated, was sold for $14,000.

The common stock of Byrd Corporation was purchased for $12,000 as a long-term investment.

Property was acquired by issuing a 15%, seven-year, $46,000 note payable to the seller.

New equipment was purchased for $22,000 cash.

On January 1, 2018, bonds were sold at their $32,000 face value.

On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $11 per share at that time.

Cash dividends of $33,000 were paid to shareholders.

On November 30,000 shares of common stock were repurchased as treasury stock at a cost of $15,000.

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).))

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!