Question
Problem 21-16 Statement of cash flows; indirect method [LO21-4, 21-8] The comparative balance sheets for 2016 and 2015 and the statement of income for 2016
Problem 21-16 Statement of cash flows; indirect method [LO21-4, 21-8]
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Dux Company. Additional information from Duxs accounting records is provided also. |
DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) | ||||
2016 | 2015 | |||
Assets | ||||
Cash | $ | 69 | $ | 38 |
Accounts receivable | 62 | 83 | ||
Dividends receivable | 6 | 4 | ||
Inventory | 91 | 68 | ||
Long-term investment | 51 | 28 | ||
Land | 145 | 74 | ||
Buildings and equipment | 207 | 286 | ||
Less: Accumulated depreciation | (43) | (86) | ||
$ | 588 | $ | 495 | |
Liabilities | ||||
Accounts payable | $ | 31 | $ | 56 |
Salaries payable | 6 | 9 | ||
Interest payable | 8 | 5 | ||
Income tax payable | 25 | 31 | ||
Notes payable | 71 | 0 | ||
Bonds payable | 131 | 88 | ||
Less: Discount on bonds | (20) | (39) | ||
Shareholders' Equity | ||||
Common stock | 228 | 218 | ||
Paid-in capitalexcess of par | 40 | 38 | ||
Retained earnings | 94 | 89 | ||
Less: Treasury stock | (26) | 0 | ||
$ | 588 | $ | 495 | |
DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) | ||||
Revenues | ||||
Sales revenue | $ | 366 | ||
Dividend revenue | 8 | $ | 374 | |
Expenses | ||||
Cost of goods sold | 138 | |||
Salaries expense | 43 | |||
Depreciation expense | 41 | |||
Interest expense | 26 | |||
Loss on sale of building | 5 | |||
Income tax expense | 35 | 288 | ||
Net income | $ | 86 | ||
Additional information from the accounting records: |
a. | A building that originally cost $112,000, and which was three-fourths depreciated, was sold for $23,000. |
b. | The common stock of Byrd Corporation was purchased for $23,000 as a long-term investment. |
c. | Property was acquired by issuing a 10%, seven-year, $71,000 note payable to the seller. |
d. | New equipment was purchased for $33,000 cash. |
e. | On January 1, 2016, $43,000 of bonds were sold at 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 $12 per share at that time. |
g. | Cash dividends of $69,000 were paid to shareholders. |
h. | On November 52,000 shares of common stock were repurchased as treasury stock at a cost of $26,000. |
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).)) |
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