Question
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 $ 47 $ 27 Accounts receivable 51 61 Less: Allowance for uncollectible accounts (3 ) (2 ) Dividends receivable 5 4 Inventory 69 57 Long-term investment 29 17 Land 96 50 Buildings and equipment 218 264 Less: Accumulated depreciation (32 ) (64 ) $ 480 $ 414 Liabilities Accounts payable $ 20 $ 34 Salaries payable 5 8 Interest payable 7 6 Income tax payable 14 16 Notes payable 46 0 Bonds payable 109 77 Less: Discount on bonds (9 ) (17 ) Shareholders' Equity Common stock 217 207 Paid-in capitalexcess of par 28 27 Retained earnings 58 56 Less: Treasury stock (15 ) 0 $ 480 $ 414
DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue $ 261 Dividend revenue 6 $ 267 Expenses Cost of goods sold 127 Salaries expense 32 Depreciation expense 19 Bad debt expense 1 Interest expense 15 Loss on sale of building 3 Income tax expense 24 221 Net income $ 46
Additional information from the accounting records:
A building that originally cost $68,000, and which was three-fourths depreciated, was sold for $14,000. The common stock of Byrd Corporation was purchased for $12,000 as a long-term investment. Property was acquired by issuing a 15%, seven-year, $46,000 note payable to the seller. New equipment was purchased for $22,000 cash. On January 1, 2018, bonds were sold at their $32,000 face value. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $11 per share at that time. Cash dividends of $33,000 were paid to shareholders. 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. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).))
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