Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2 1 - 1 6 ( Algo ) Statement of cash flows; Indirect method [ L 0 2 1 - 4 , 2 1

Problem 21-16(Algo) Statement of cash flows; Indirect method [L021-4,21-8]
The comparative balance sheets for 2024 and 2023 and the statement of Income for 2024 are glven below for Dux Company.
Additlonal information from Dux's accounting records is provided also.
Additional information from the accounting recoral:
a. A bullding that originally cost $112,000, and which was three-fourths depreclated, 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, $39,000 note payable to the seller.
d. New equipment was purchased for $42,000cash.
e. On January 1,2024, bonds were sold at thelr $34,000 face value.
f. On January 19. Dux lssued a 5% stock dividend (1,000 shares). The market prlce of the $10 par value common stock was $14 per
share at that time.
g. Cash dividends of $22,000 were pald 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.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (1.e.,10,000 should be
entered as 10).
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Glencoe Accounting Concepts Procedures Applicatons

Authors: McGraw-Hill Education

3rd Edition

0028036174, 978-0028036175

More Books

Students also viewed these Accounting questions

Question

Why did Hostess Brands Inc. go into bankruptcy?

Answered: 1 week ago