Problem 21-16 (Static) Statement of cash flows; indirect method [LO21-4, 21-8] The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 $ 20 Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation 10 40 (25) $ 420 250 (50) $ 369 liabilities $ 420 $ 369 $ 13 $ 29 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 (3) 210 200 24 20 $ 426 5369 $ 203 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $ 200 Dividend revenue 3 Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense Net income 00 m 178 $ 25 Additional information from the accounting records: 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, 2021, 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 $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).) Answer is not complete. DUX COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Payment of dividends Loss on sale of building 25 5 (3) X 3 Changes in operating assets and liabilities: Decrease in accounts receivable 3X .......(5) UNGSARSA.in. inventory.. . (5) Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in interest payable Decrease in income tax payable OOO (3) 2 (1) $ 19 7 Net cash flows from operating activities Cash flows from investing activities: Gain on sale of building Purchase of long-term investment Purchase of equipment Increase in dividends receivable Net cash flows from investing activities (5) (15) 3 X (10) Net cash flows from investing activities Cash flows from financing activities: Sale of bonds payable Payment of dividends Purchase of treasury stock 25 (13) (8) 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 Increase in dividends receivable 33 $ 30 14