The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash Accounts receivable $ 33 $ 20 48 50 Less: Allowance for uncollectible (4) (3) accounts 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 Liabilities 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 DUX COMPANY Income Statement For the Year Ended December 31, 2024 Revenues ($ in thousands) Sales revenue Dividend revenue Expenses $ 200 3 $ 203 Cost of goods sold Salaries expense Depreciation expense Bad debt expense 120 25 5 1 Interest expense 8 Loss on sale of 3 building Income tax expense 16 178 Net income $ 25 Additional information from the accounting records: 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, 2024, 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 $13,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). DUX COMPANY Statement of Cash Flows For year ended December 31, 2024 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash 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, 2024, 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 $13,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). DUX COMPANY Statement of Cash Flows For year ended December 31, 2024 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash Accounts receivable $ 33 $ 20 48 50 Less: Allowance for uncollectible (4) (3) accounts 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 Liabilities 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 DUX COMPANY Income Statement For the Year Ended December 31, 2024 Revenues ($ in thousands) Sales revenue Dividend revenue Expenses $ 200 3 $ 203 Cost of goods sold Salaries expense Depreciation expense Bad debt expense 120 25 5 1 Interest expense 8 Loss on sale of 3 building Income tax expense 16 178 Net income $ 25 Additional information from the accounting records: 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, 2024, 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 $13,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). DUX COMPANY Statement of Cash Flows For year ended December 31, 2024 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash 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, 2024, 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 $13,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10). DUX COMPANY Statement of Cash Flows For year ended December 31, 2024 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities:
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
In your experience, have you seen a lot of miscalculations happen where fringes get incorrectly logged?
-
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Duxs accounting records is provided also. Additional...
-
Refer to the data provided in the P 214 for Dux Company. Data from in P 21-4 The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company....
-
Case Study 1?1 Amazon in 2019 Answer the five questions at the end of the case. Thepurpose of this case, and others you will be assigned, is toillustrate the application of the concepts covered in...
-
The Evanstonian is an upscale independent hotel that caters to both business and leisure travelers. When a guest calls room service at The Evanstonian, the room-service manager takes down the order....
-
Listed below are "attribute" ratings made by participants in a speed dating session. Each attribute rating is the sum of the ratings of five attributes (sincerity, intelligence, fun, ambition, shared...
-
What are the two criteria by which a dividend policy should be judged?
-
Beck Company set the following standard unit costs for its single product. Direct materials (26 Ibs. @ $4 per Ib.) . . . . . . . . . . . . . . . . $104.00 Direct labor (8 hrs. @ $8 per hr.) . . . . ....
-
1 point) An unknown radioactive element decays into non-radioactive substances. In 740 days the radioactivity of a sample decreases by 50 per a) What is the half-life of the element? alf-life: (days)...
-
Estimate the area Upper A between the graph of the function f left-parenthesis x right-parenthesis equals 10 sin x and the interval left-bracket 0 comma pi right-bracket Number . Use an approximation...
-
Scholes Systems supplies a particular type of office chair tolarge retailers such as Target, Costco, and Office Max. Scholes isconcerned about the possible effects of inflation on itsoperations....
-
What is the order of preparing trial balances? Here is a partial worksheet for the Zeidman Security Services Company. Required: Fill in the income statement and balance sheet sections of the...
-
Brand X is a popular clothing brand that has been in business for over a decade. In recent years, the brand has experienced a decline in sales and brand recognition. A new marketing team has been...
-
WHY is Rent Revenue accounted for under Other Income and Expense on the Income Statement?
-
What is the lamina propria and where is it located? Given thathigh number of eosinphils i the lamina propria suggests an allergicreaction, how might that lead to intestinal problems?
-
1. Describe the problems facing the Fruitvale branch. Would you like to be Bill Pippin? 2. Who are Manzana's customers? Who are the consumers? How do the customers choose an insurance carrier? 3....
-
Compare and contrast licensing and subcontracting.
-
Why are accounting rules needed when preparing financial statements?
-
An accounting error, which was regarded as significant in nature and size, was not discovered until a later reporting period. How should it be dealt with?
-
The following information was extracted from the financial statements of I. Ching (Booksellers) plc for the year to 31 May 2016: Required: Prepare a statement of comprehensive income for the year...
Study smarter with the SolutionInn App