DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $123.0 $ 35.0 Accounts receivable 63.0 65.0 Less: Allowance for uncollectible accounts (4.0) (3.0) Dividends receivable 18.0 17.0 Inventory 70.0 65.0 Long-term investment 30.0 25.0 Land 85.0 40.0 Buildings and equipment 165.0 265.0 Less: Accumulated depreciation (8.0) (125.0) $542.0 $ 384.0 Liabilities Accounts payable $ 28.0 $ 35.0 Salaries payable 17.0 20.0 Interest payable 19.0 17.0 Income tax payable 22.0 23.0 Notes payable 45.0 0 Bonds payable 92.0 52.0 Less: Discount on bonds (2.0) (3.0) Shareholders' Equity Common stock 210.0 200.0 Paid-in capital-excess of par 24.0 20.0 Retained earnings 95.0 20.0 Less: Treasury stock (8.0) 0 $542.0 $ 384.0 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $425.0 Dividend revenue Expenses 18.0 $443.0 Cost of goods sold 150.0 Salaries expense 55.0 Depreciation expense 3.0 Bad debt expense 1.0 Interest expense 38.0 Loss on sale of building 33.0 Income tax expense 46.0 326.0 Net income $117.0 Additional information from the accounting records: a. A building that originally cost $160,000, 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, $45,000 note payable to the seller. d. New equipment was purchased for $60,000 cash. e. On January 1, 2021, bonds were sold at their $40,000 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 $28,000 were paid to shareholders. h. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Droy Next 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, $45,000 note payable to the seller. d. New equipment was purchased for $60,000 cash. e. On January 1, 2021, bonds were sold at their $40,000 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 $28,000 were paid to shareholders. h. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Answer is not complete. DUX COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Amortization of bond discount Loss on sale of building $ 117 Drov 3 1 33 Novt DUX COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Amortization of bond discount $ 117 1 3-3 Loss on sale of building Changes in operating assets and liabilities: Decrease in accounts payable Decrease in accounts receivable Increase in allowance for uncollectible accounts Decrease in income tax payable Increase in dividends receivable Increase in inventory (7) 2 1 (1) (1) (5) Decrease in salaries payable Net cash flows from operating activities Cash flows from investing activities: (3) 140 < Prev 8 of 8 Next 3 AM 8 Net cash flows from operating activities Cash flows from investing activities: Sale of building Purchase of long-term investment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Sale of bonds payable Payment of dividends Purchase of treasury stock Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired land by issuing note 7 (5) (60) 40 (28) (8) $ 140 (58) 4 86 35 $ 121 45