The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Dux Company. Additional information from Duxs accounting records is provided also.

DUX COMPANY

Comparative Balance Sheets

December 31, 2016 and 2015

($ in 000s)20162015

Assets

Cash$33$20

Accounts receivable4447

Dividends receivable32

Inventory5550

Long-term investment1510

Land7040

Buildings and equipment225250

Less: Accumulated depreciation(25)(50)

$420$369

Liabilities

Accounts payable$13$20

Salaries payable25

Interest payable42

Income tax payable78

Notes payable300

Bonds payable9570

Less: Discount on bonds(2)(3)

Shareholders' Equity

Common stock210200

Paid-in capitalexcess of par2420

Retained earnings4547

Less: Treasury stock (at cost)(8)0

$420$369

DUX COMPANY

Income Statement

For Year Ended December 31, 2016

($ in 000s)Revenues

Sales revenue$200

Dividend revenue3$203

Expenses

Cost of goods sold120

Salaries expense25

Depreciation expense5

Interest expense8

Loss on sale of building3

Income tax expense17

178

Net income$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, 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 $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 of Dux Company for the year ended December 31, 2016. Present cash flows from operating activities by the DIRECT method. (You may omit the schedule to reconcile net income to cash flows from operating activities)