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$94 $31 Accounts receivable 37 61 Less: Allowance for uncollectible accounts (4) (3) Dividends receivable 5 4 Inventory 55 50 Long-term investment 35 32 Land 50 40 Buildings and equipment 263 260 Less: Accumulated depreciation (35) (50) $500 $425 Liabilities Accounts payable$21 $39 Salaries payable 5 7 Interest payable 11 5 Income tax payable 9 11 Notes payable 10 0 Bonds payable 95 75 Less: Discount on bonds (1) (2) Shareholders' Equity Common stock 210 200 Paid-in capitalexcess of par 24 20 Retained earnings 121 70 Less: Treasury stock (5) 0 $500 $425

DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands)Revenues Sales revenue$310 Dividend revenue 5 $315 Expenses Cost of goods sold 175 Salaries expense 20 Depreciation expense 9 Bad debt expense 1 Interest expense 9 Loss on sale of building 1 Income tax expense 22 237 Net income $78

Additional information from the accounting records:

1. A building that originally cost $32,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.
3. Property was acquired by issuing a 14%, seven-year, $10,000 note payable to the seller.
4. New equipment was purchased for $35,000 cash.
5. On January 1, 2021, bonds were sold at their $20,000 face value.
6. 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.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $5,000.

Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method.

DUX COMPANYStatement of Cash flows for the year ended December 31, 2021($ in thousands)Cash flows from operating activities: Cash inflows:From customers from dividends received cash outflows:To suppliers of goods employees interest income taxes net cash flows from operating activities$0Cash flows from investing activities: Purchase of equipment sale of building purchase of long-term investment not cash flows from investing activities0Cash flows from financing activities: Sale of bonds payable payment of dividends purchase of treasury stocked cash flows from financing activities0Net increase (decrease) in cash cash balance, January 1Cash balance, December 31$0Noncash investing and financing activities: Acquired land