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. 2020 (5.0) DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 Assets Cash $105.0 Accounts receivable 60.0 Less: Allowance for uncollectible accounts Dividends receivable 15.0 Inventory 67.0 Long-term investment 27.0 Land 82.0 Buildings and equipment 177.0 Less: Accumulated depreciation (11.0) $517.0 Liabilities Accounts payable $ 25.0 Salaries payable 14.0 Interest payable 16.0 Income tax payable 19.0 Notes payable 42.0 Bonds payable 95.0 Less: Discount on bonds (2.0) Shareholders' Equity Common stock 210.0 Paid-in capital-excess of par 24.0 Retained earnings 82.0 Less: Treasury stock (8.0) $517.0 32.0 62.0 (4.0) 14.0 62.0 22.0 40.0 262.0 (110.0) $ 380.0 $ 32.0 17.0 14.0 20.0 0 58.0 (3.0) 200.0 20.0 22.0 0 $ 380.0 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue $380.0 Dividend revenue 15.0 $395.0 Expenses Cost of goods sold 144.0 Salaries expense 49.0 Depreciation expense 3.0 Bad debt expense 1.0 Interest expense 32.0 Loss on sale of building 27.0 Income tax expense 40.0 296.0 Net income $ 99.0 Additional information from the accounting records: a. A building that originally cost $136,000, and which was three-fourths depreciated, was sold for $7,000. b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. c. Property was acquired by issuing a 13%, seven-year, $42,000 note payable to the seller. d. New equipment was purchased for $51,000 cash. e. On January 1, 2021, bonds were sold at their $37,000 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 $25,000 were paid to shareholders. h. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).) DUX COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities
