Question
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Duxs
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Duxs accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 69.0 $ 26.0 Accounts receivable 54.0 56.0 Less: Allowance for uncollectible accounts (5.0) (4.0) Dividends receivable 9.0 8.0 Inventory 61.0 56.0 Long-term investment 21.0 16.0 Land 76.0 40.0 Buildings and equipment 201.0 256.0 Less: Accumulated depreciation (17.0) (80.0) $ 469.0 $ 374.0 Liabilities Accounts payable $ 19.0 $ 26.0 Salaries payable 8.0 11.0 Interest payable 10.0 8.0 Income tax payable 13.0 14.0 Notes payable 36.0 0 Bonds payable 95.0 64.0 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 64.0 34.0 Less: Treasury stock (8.0) 0 $ 469.0 $ 374.0 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 290.0 Dividend revenue 9.0 $ 299.0 Expenses Cost of goods sold 132.0 Salaries expense 37.0 Depreciation expense 3.0 Bad debt expense 1.0 Interest expense 20.0 Loss on sale of building 15.0 Income tax expense 28.0 236.0 Net income $ 63.0 Additional information from the accounting records: A building that originally cost $88,000, 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, $36,000 note payable to the seller. New equipment was purchased for $33,000 cash. On January 1, 2024, bonds were sold at their $31,000 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 $19,000 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.
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