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 $ 43 $ 25 Accounts receivable 49 57 Less Allowance for uncollectibleaccounts (4) (3) Dividends receivable 7 6 Inventory 65 55 Long term investment 25 15 Land 87 45 Buildings and equipment 220 260 Less Accumulated depreciation (30) (60) $462 $400 Liabilities Accounts payable $ 18 $ 30 Salaries payable 7 8 Interest payable 9 8 Income tax payable 12 13 Notes payable 42 0 Bonds payable 105 75 Less Discount on bonds (7) (13) Shareholders' Equity Common stock 215 205 Paid in capitalexcess of par 31 25 Retained earnings 43 49 Less Treasury stock (13) 0 $462 $400 DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue $ 245 Dividend revenue 3 $ 248 Expenses Cost of goods sold 125 Salaries expense 30 Depreciation expense 15 Bad debt expense 1 Interest expense 13 Loss on sale ofbuilding 2 Income tax expense 22 208 Net income $ 40 Additional information from the accounting records A building that originally cost $60,000, and which was three fourths depreciated, was sold for$13,000 The common stock of Byrd Corporation was purchased for $10,000 as a long terminvestment Property was acquired by issuing a 10 , seven year, $42,000 note payable to theseller New equipment was purchased for $20,000cash On January 1, 2018, bonds were sold at their $30,000 facevalue On January 19, Dux issued a 3 stock dividend (1,000 shares) The market price of the $10 par value common stock was $16 per share at thattime Cash dividends of $30,000 were paid toshareholders On November 26,000 shares of common stock were repurchased as treasury stock at a cost of$13,000 Required Prepare the statement of cash flows for Dux Company using the indirectmethod What inferences can you make about the financial health of the company based on the statement of cash flows and the accompanying balance sheet and incomestatement Based on your analysis, what recommendations might you make to the management of thecompany

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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	$ 43	$ 25
Accounts receivable	49	57
Less: Allowance for uncollectibleaccounts	(4)	(3)
Dividends receivable	7	6
Inventory	65	55
Long-term investment	25	15
Land	87	45
Buildings and equipment	220	260
Less: Accumulated depreciation	(30)	(60)
	$462	$400
Liabilities
Accounts payable	$ 18	$ 30
Salaries payable	7	8
Interest payable	9	8
Income tax payable	12	13
Notes payable	42	0
Bonds payable	105	75
Less: Discount on bonds	(7)	(13)
Shareholders' Equity
Common stock	215	205
Paid-in capitalexcess of par	31	25
Retained earnings	43	49
Less: Treasury stock	(13)	0
	$462	$400


DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue	$	245
Dividend revenue		3	$	248
Expenses
Cost of goods sold		125
Salaries expense		30
Depreciation expense		15
Bad debt expense		1
Interest expense		13
Loss on sale ofbuilding		2
Income tax expense		22		208
Net income			$	40

Additional information from the accounting records:

A building that originally cost $60,000, and which was three-fourths depreciated, was sold for$13,000.

The common stock of Byrd Corporation was purchased for $10,000 as a long-terminvestment.

Property was acquired by issuing a 10%, seven-year, $42,000 note payable to theseller.

New equipment was purchased for $20,000cash.

On January 1, 2018, bonds were sold at their $30,000 facevalue.

On January 19, Dux issued a 3% stock dividend (1,000 shares). The market price of the $10 par value common stock was $16 per share at thattime.

Cash dividends of $30,000 were paid toshareholders.

On November 26,000 shares of common stock were repurchased as treasury stock at a cost of$13,000.

Required:

Prepare the statement of cash flows for Dux Company using the indirectmethod.

What inferences can you make about the financial health of the company based on the statement of cash flows and the accompanying balance sheet and incomestatement?

Based on your analysis, what recommendations might you make to the management of thecompany?