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. DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) 2016 2015 Assets Cash $ 93 $ 31 Accounts receivable 33 58 Dividends receivable 5 4 Inventory 55 50 Long-term investment 35 32 Land 50 40 Buildings and equipment 263 260 Less: Accumulated depreciation (35) (50) $ 499 $ 425 Liabilities Accounts payable $ 21 $ 39 Salaries payable 5 7 Interest payable 11 5 Income tax payable 9 11 Notes payable 10 0 Bonds payable 95 75 Less: Discount on bonds (1) (2) Shareholders' Equity Common stock 210 200 Paid-in capitalexcess of par 24 20 Retained earnings 120 70 Less: Treasury stock (at cost) (5) 0 $ 499 $ 425 DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) Revenues Sales revenue $ 310 Dividend revenue 5 $ 315 Expenses Cost of goods sold 175 Salaries expense 20 Depreciation expense 9 Interest expense 9 Loss on sale of building 1 Income tax expense 24 238 Net income $ 77 Additional information from the accounting records: a. A building that originally cost $32,000, and which was three-fourths depreciated, was sold for $7,000. b. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment. c. Property was acquired by issuing a 14%, seven-year, $10,000 note payable to the seller. d. New equipment was purchased for $35,000 cash. e. On January 1, 2016, bonds were sold at their $20,000 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 $5,000. 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.