Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kindly show work. Will up vote. thanks 7 The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given
Kindly show work. Will up vote. thanks
7 The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 2005) 2018 2017 Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation $ 39 47 (5) 5 61 21 81 222 $ 23 53 (4) 4 53 13 43 256 (56) $ 385 (28) $ 443 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 $ 16 5 7 10 38 101 (5) $ 26 7 4 13 73 (9) 213 27 42 (11) $ 443 203 23 45 $ $ 385 DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 2005) Revenues Sales revenue $ 225 Dividend revenue 6 $ 231 Expenses Cost of goods sold 123 Salaries expense 28 Depreciation expense 11 Bad debt expense 1 Interest expense 11 Loss on sale of building 5 Income tax expense 20 199 Net income $ 32 Additional information from the accounting records: a. A building that originally cost $52,000, and which was three-fourths depreciated, was sold for $8,000. b. The common stock of Byrd Corporation was purchased for $8,000 as a long-term investment. c. Property was acquired by issuing a 15%, seven-year, $38,000 note payable to the seller. d. New equipment was purchased for $18,000 cash. e. On January 1, 2018, bonds were sold at their $28,000 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 $21,000 were paid to shareholders. h. On November 22,000 shares of common stock were repurchased as treasury stock at a cost of $11,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)) DUX COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in 000s) Adjustments for noncash effects. Changes in operating assets and liabilities Cash balance, January 1 Noncash investing and financing activitiesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started