Problem 21-4 (Algo) Statement of cash flows; direct method [LO21-3, 21-8]

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

DUX COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
	2024	2023
Assets
Cash	$ 81	$ 56
Accounts receivable	59	60
Less: Allowance for uncollectible accounts	(3)	(2)
Dividends receivable	7	6
Inventory	50	45
Long-term investment	32	30
Land	70	35
Buildings and equipment	275	310
Less: Accumulated depreciation	(51)	(90)
	$ 520	$ 450
Liabilities
Accounts payable	$ 59	$ 73
Salaries payable	3	6
Interest payable	9	4
Income tax payable	8	16
Notes payable	35	0
Bonds payable	95	70
Less: Discount on bonds	(5)	(6)
Shareholders' Equity
Common stock	210	200
Paid-in capitalexcess of par	24	20
Retained earnings	88	67
Less: Treasury stock	(6)	0
	$ 520	$ 450

DUX COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues
Sales revenue	$ 300
Dividend revenue	7	$ 307
Expenses
Cost of goods sold	170
Salaries expense	45
Depreciation expense	6
Bad debt expense	1
Interest expense	10
Loss on sale of building	7
Income tax expense	22	261
Net income		$ 46

Additional information from the accounting records:

A building that originally cost $60,000, and which was three-fourths depreciated, was sold for $8,000.

The common stock of Byrd Corporation was purchased for $2,000 as a long-term investment.

Property was acquired by issuing a 13%, seven-year, $35,000 note payable to the seller.

New equipment was purchased for $25,000 cash.

On January 1, 2024, bonds were sold at their $25,000 face value.

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.

Cash dividends of $11,000 were paid to shareholders.

On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $6,000.

Required:

Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

Note: Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.

DUX COMPANY Statement of Cash Flows For the year ended December 31, 2024 (\$ in thousands) Cash flows from operating activities: Cash inflows: \begin{tabular}{|l||l|} \hline From dividends received & \\ \hline \hline From customers & \\ \hline & \\ \hline Cash outflows: & \\ \hline To suppliers of goods & \\ \hline To employees & \\ \hline For interest & \\ \hline For income taxes & \\ \hline & \\ \hline & \\ \hline Net cash flows from operating activities & \\ \hline Cash flows from investing activities: & \\ \hline Sale of building & \\ \hline Purchase of equipment & \\ \hline Purchase of long-term investment & \\ \hline \hline \end{tabular}