Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (s in 000s) 2018 2017 Assets Cash $ 68 $ 37 Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable 43 Inventory Long-term investment Land 75 48 75 65 Buildings and equipment Less: Accumulated depreciation 161 200 (66) _(100) $409 393 Liabilities $ 10 24 Accounts payable Salaries payable Interest payable Income tax payable Notes payable 10 Bonds payable Less: Discount on bonds 60 50 Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnin 20 81 85 gs Less: Treasury stock (at cost) (3) _e $409 393 DUX COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) Revenues $ 330 3 $ 333 Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense $ 225 30 Interest expense Loss on sale of building Income tax expense $ 41312 $ 21 Net income Additional information from the accounting records a. A building that originally cost $52,000, and which was three-fourths depreciated, was sold for $11,000. b. The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment. Property was acquired by issuing a 14%, seven-year, $10,000 note payable to the seller d. New equipment was purchased for $13,000 cash. e. On January 1, 2018, bonds were sold at their $10,000 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 $10,000 were paid to shareholders. h. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $3,000 DUX COMPANY Statement of Cash Flows For year ended December 31, 2018 (S in 000s) Cash inflows Cash outflows Noncash investing and financing activities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started