The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.

Additional information from the accounting records:
a. A building that originally cost $40,000, 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, $30,000 note payable to the seller.
d. New equipment was purchased for $15,000 cash.
e. On January 1, 2013, bonds were sold at their $25,000 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 $13,000 were paid to shareholders.
h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2013. Present cash flows from operating activities by the directmethod.

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DUX COMPANY Comparative Balance Sheets December 31, 2013 and 2012 (S in 000s) 2013 2012 Assets S 33 S 20 47 Accounts receivable Dividends receivable Inventory Long-term investment 15 10 Buildings and equipment 225 (25) $420 Less: Accumulated depreciation (50) S369 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable S 13 S 20 30 95 Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 210 24 45 47 Less: Treasury stock $420 S369 DUX COMPANY Income Statement For the Year Ended December 31, 2013 (S in 000s) Revenues Sales revenue Dividend revenue $200 $203 Expenses Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of buildin Income tax expense 120 25 3 17 178 Net income $ 25