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The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Duxs

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Duxs accounting records is provided also.

DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
2018 2017
Assets
Cash $ 57 $ 32
Accounts receivable 56 71
Less: Allowance for uncollectible accounts (5 ) (4 )
Dividends receivable 5 3
Inventory 79 62
Long-term investment 39 22
Land 123 64
Buildings and equipment 213 274
Less: Accumulated depreciation (37 ) (74 )
$ 530 $ 450
Liabilities
Accounts payable $ 25 $ 44
Salaries payable 5 6
Interest payable 7 4
Income tax payable 19 22
Notes payable 59 0
Bonds payable 119 82
Less: Discount on bonds (14 ) (27 )
Shareholders' Equity
Common stock 222 212
Paid-in capitalexcess of par 36 32
Retained earnings 67 75
Less: Treasury stock (15 ) 0
$ 530 $ 450

DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue $ 310
Dividend revenue 7 $ 317
Expenses
Cost of goods sold 132
Salaries expense 37
Depreciation expense 29
Bad debt expense 1
Interest expense 20
Loss on sale of building 7
Income tax expense 29 255
Net income $ 62

Additional information from the accounting records:

  1. A building that originally cost $88,000, and which was three-fourths depreciated, was sold for $15,000.
  2. The common stock of Byrd Corporation was purchased for $17,000 as a long-term investment.
  3. Property was acquired by issuing a 12%, seven-year, $59,000 note payable to the seller.
  4. New equipment was purchased for $27,000 cash.
  5. On January 1, 2018, bonds were sold at their $37,000 face value.
  6. On January 19, Dux issued a 3% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
  7. Cash dividends of $56,000 were paid to shareholders.
  8. On November 30,000 shares of common stock were repurchased as treasury stock at a cost of $15,000.

Required: Prepare the statement of cash flows for Dux Company using the indirect method.

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