Question
T he comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company Additional information from
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) ASSETS 2021 -- 2020 CASH CASH $ 72 --$27 ACCOUNTS RECEIVABLE, $41 - $56 LESS: ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS (3) -- (2) DIVIDENDS RECEIVABLE, 6 -- 5 INVENTORY,95 - 90 LONG-TERM INVESTMENT - 27-24, LAND 95 -----75 BUILDINGS AND EQUIPMENT 194-220 LESS: ACCUMULATED DEPRECIATION(34) --- (60) $493 -- $435
LIABILITIES ACCOUNTS PAYABLE
ACCOUNTS PAYABLE $ 76 - $ 83 SALARIES PAYABLE 7- 10 INTEREST PAYABLE 10 -- 5 INCOME TAX PAYABLE 5 - 7 NOTES PAYABLE 20-0 BONDS PAYABLE 80-55 LESS:DISCOUNT ON BONDS (2) = (3) SHAREHOLDERS' EQUITY
COMMON STOCK 210 -------- 200 PAID=IN CAPITAL-EXCESS OF PAR 24-20 RETAINED EARNING 74--------- 58 LESS: TREASURY STOCK (11)-0 493 ---------- 435
DUX COMPANY , INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 ($ IN THOUSANDS)
REVENUES
SALES REVENUES $ 270
DIVIDEND REVENUE 6 = $276
EXPENSES
COST OF GOODS SOLD- 155
SALARIES EXPENSE - 39
DEPRECIATION EXPENSE - 10
BAD DEBT EXPENSE - 1
INTEREST EXPENSE - 8
LOSS ON SALE OF BUIIDING 4
INCOME TAX EXPENSE 18 ------ 235
NET INCOME $41
Additional information from the accounting records: a. A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $8,000. b. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment. c. Property was acquired by issuing a 10%, seven-year, $20,000 note payable to the seller. d. New equipment was purchased for $22,000 cash. e. On January 1, 2018, 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 $11,000 were paid to shareholders. h. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $11,000. Required: Prepare the statement of cash flows for Dux Company for the year ended December 31,2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
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