Question
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands) 2021 2020
Assets
Cash $ 99.0 $ 31.0
Accounts receivable 59.0 61.0
Less: Allowance for uncollectible accounts (4.0 ) (3.0 )
Dividends receivable 14.0 13.0
Inventory 66.0 61.0
Long-term investment 26.0 21.0
Land 81.0 40.0
Buildings and equipment 181.0 261.0
Less: Accumulated depreciation (10.0 ) (105.0 )
$ 512.0 $ 380.0
Liabilities
Accounts payable $ 24.0 $ 31.0
Salaries payable 13.0 16.0
Interest payable 15.0 13.0
Income tax payable 18.0 19.0
Notes payable 41.0 0
Bonds payable 96.0 60.0
Less: Discount on bonds (2.0 ) (3.0 )
Shareholders' Equity
Common stock 210.0 200.0
Paid-in capitalexcess of par 24.0 20.0
Retained earnings 81.0 24.0
Less: Treasury stock (8.0 ) 0
$ 512.0 $ 380.0
DUX COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Revenues
Sales revenue $ 365.0
Dividend revenue 14.0 $ 379.0
Expenses
Cost of goods sold 142.0
Salaries expense 47.0
Depreciation expense 1.0
Bad debt expense 1.0
Interest expense 30.0
Loss on sale of building 25.0
Income tax expense 38.0 284.0
Net income $ 95.0
Additional information from the accounting records:
- A building that originally cost $128,000, and which was three-fourths depreciated, was sold for $7,000.
- The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
- Property was acquired by issuing a 13%, seven-year, $41,000 note payable to the seller.
- New equipment was purchased for $48,000 cash.
- On January 1, 2021,bonds were sold at their $36,000 face value.
- 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.
- Cash dividends of $24,000 were paid to shareholders.
- On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000.
Required:
Prepare the statement of cash flows for Dux Company using the indirect method. (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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