Posted: February 16th, 2020

Statement of Cash Flows of Dux Company Assignment

1. value: 5.00 points Problem 21-4 Statement of cash flows, direct method [LO21-3, 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 Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2016, and 2015 ($ in 000s) 2016 $ 47 2015 $ 26 Assets Cash Accounts receivable Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation 8580 26 22 100 187 210 (26) (50) $ 472 $ 415 $ 73 CO2 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital excess of par Retained earnings

Less: Treasury stock (at cost) (2) 200 (1) 210 24 65 (10) $ 472 0 $ 415 DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) Revenues Sales revenue $ 260 Dividend revenue 5 $265 Expenses Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of building Income tax expense 19227 Net income $ 38 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. The property was acquired by issuing a (expression error)%, seven-year, $30,000 note payable to the seller. d. New equipment was purchased for $21,000 cash. e. On January 1, 2016, 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 $10,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) DUX COMPANY Statement of Cash Flows For the year ended December 31, 2016 ($ in 000s) Cash inflows: Cash outflows: .