Dux Company

Comparative Balance Sheets

December 31,2018 and 2017

($ in thousands)

Asssets	2018	201
Cash	48	50
Accounts Receivable	33	20
Less Allowance for uncollectible accounts	(4)	(3)
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)
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	37
Less: Treasury stock	(8)	0
	420	369

Dux Company

Income Statement

For the Year Ended December 31, 2018

Revenues	200
Dividend revenue	3	203
Expenses
Cost of Goods Sold	120
Salaries Expense	25
Depreciation Expense	5
Bad Debt Expense	1
Interest Expense	8
Loss on Sale of Building	3
Income Tax Expense	16	178
Net Income		25

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, 2018, 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 of Dux Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)

( I finished the requirement but need help with what the professor asked me to do what is written below):

Create a Cash Flows from Operating Activities- Indirect Method and Reconciliation of Net Income to Net Cash Flows from Operating Activities