DUX COMPANY _statement of cash flows

| December 6, 2017

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

$

36

$

26

Accounts receivable

48

53

Dividends receivable

5

4

Inventory

85

80

Long-term investment

26

22

Land

100

70

Buildings and equipment

187

210

Less:
Accumulated depreciation

(26

)

(50

)

$

461

$

415

Liabilities

Accounts payable

$

62

$

73

Salaries payable

5

9

Interest payable

8

4

Income tax payable

4

6

Notes payable

30

0

Bonds payable

75

50

Less:
Discount on bonds

(1

)

(2

)

Shareholders’ Equity

Common stock

210

200

Paid-in capital—excess of par

24

20

Retained earnings

54

55

Less:
Treasury stock

(10

)

0

$

461

$

415

DUX
COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in 000s)

Revenues

Sales revenue

$

260

Dividend revenue

5

$

265

Expenses

Cost of goods sold

$

150

Salaries expense

37

Depreciation
expense

9

Interest expense

8

Loss on sale of
building

4

Income tax expense

$

30

238

Net income

$

27

Additional information from the accounting
records:

a.

A building that originally cost $44,000, and
which was three-fourths depreciated, was sold for $7,000.

b.

The common stock of Byrd Corporation was
purchased for $4,000 as a long-term investment.

c.

Property was acquired by issuing a 15%,
seven-year, $30,000 note payable to the seller.

d.

New equipment was purchased for $21,000 cash.

e.

On January 1, 2013, 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 for Dux Company. (Hint: Use the
T-account method to assist in your analysis.) (Do not
round your intermediate calculations. Enter your answers in thousands. Amounts
to be deducted should be indicated with a minus sign.)

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