7.

value: 1.00 points

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		2015
Assets
Cash	$	85	$	69
Accounts receivable		53		56
Dividends receivable		3		2
Inventory		45		40
Long-term investment		31		28
Land		60		30
Buildings and equipment		268		300
Less: Accumulated depreciation		(43)		(80)
	$	502	$	445
Liabilities
Accounts payable	$	63	$	84
Salaries payable		1		5
Interest payable		7		3
Income tax payable		7		9
Notes payable		30		0
Bonds payable		90		65
Less: Discount on bonds		(4)		(5)
Shareholders' Equity
Common stock		210		200
Paid-in capitalexcess of par		24		20
Retained earnings		78		64
Less: Treasury stock (at cost)		(4)		0
	$	502	$	445

DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues
Sales revenue	$	290
Dividend revenue		3	$	293
Expenses
Cost of goods sold		165
Salaries expense		43
Depreciation expense		5
Interest expense		7
Loss on sale of building		9
Income tax expense		22		251
Net income			$	42

Additional information from the accounting records:

a.	A building that originally cost $56,000, and which was three-fourths depreciated, was sold for $5,000.
b.	The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.
c.	Property was acquired by issuing a 12%, seven-year, $30,000 note payable to the seller.
d.	New equipment was purchased for $24,000 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, 500 shares of common stock were repurchased as treasury stock at a cost of $4,000.

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.)