Problem 21-4 Statement of cash flows; direct method [LO21-3, 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 Dux's accounting records is provided also.

REQUIRED:

Prepare the statement of cash flows of Dux Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.)

DUX COMPANY Income Statement For Year Ended December 31, 2016 (S in 000s) Revenues $ 210 Sales revenue Dividend revenue 4 $214 Expenses Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of building Income tax expense 12% 27 4 6 14 177 Net income S 37 Additional information from the accounting records. a. A building that originally cost $24,000, and which was three-fourths depreciated, was sold for $5,000 b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. c. Property was acquired by issuing a (expression error)%, seven-year, $10,000 note payable to the seller d. New equipment was purchased for $16,000 cash e. On January 1, 2016, 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 $14,000 were paid to shareholders h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $5,000 DUX COMPANY Statement of Cash Flows For year ended December 31, 2016 (S in 000s) Cash inflows Cash outflows