The comparative balance sheets for 2013 and 2012 and the

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.


Comparative Balance Sheets

December 31, 2013 and 2012

($ in 000s)

2013 2012


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 


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 


Income Statement

For Year Ended December 31, 2013

($ in 000s)


Sales revenue $ 200 

Dividend revenue 3 $ 203 


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.


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.)

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...