Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings DUX COMP Comparative Balance Sheets December 31, 2018 and 2017 ($ in eees) Less: Treasury stock DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in eees) Revenues Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense Net income $ 325 9 $334 134 39 33 1 22 6 31 266 $ 68 2018 $ 61 $34 58 (3) 3 83 43 131 211 (39) $ 548 5 21 61 123 (16) 2017 224 36 86 (22) $ 27 $ 48 3 $ 548 75 (2) 1 64 24 70 278 (78) $466 5 2 26 0 84 (31) 214 34 84 0 $ 466 Additional information from the accounting records: a. A building that originally cost $96.000, and which was three-fourths depreciated, was sold for $18,000. b. The common stock of Byrd Corporation was purchased for $19,000 as a long-term investment. c. Property was acquired by issuing a 10%, seven-year, $61,000 note payable to the seller. d. New equipment was purchased for $29,000 cash. e. On January 1, 2018, bonds were sold at their $39,000 face value. f. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per share at that time. g. Cash dividends of $54.000 were paid to shareholders. h. On November 44,000 shares of common stock were repurchased as treasury stock at a cost of $22,000.
Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings DUX COMP Comparative Balance Sheets December 31, 2018 and 2017 ($ in eees) Less: Treasury stock DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in eees) Revenues Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense Net income $ 325 9 $334 134 39 33 1 22 6 31 266 $ 68 2018 $ 61 $34 58 (3) 3 83 43 131 211 (39) $ 548 5 21 61 123 (16) 2017 224 36 86 (22) $ 27 $ 48 3 $ 548 75 (2) 1 64 24 70 278 (78) $466 5 2 26 0 84 (31) 214 34 84 0 $ 466 Additional information from the accounting records: a. A building that originally cost $96.000, and which was three-fourths depreciated, was sold for $18,000. b. The common stock of Byrd Corporation was purchased for $19,000 as a long-term investment. c. Property was acquired by issuing a 10%, seven-year, $61,000 note payable to the seller. d. New equipment was purchased for $29,000 cash. e. On January 1, 2018, bonds were sold at their $39,000 face value. f. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per share at that time. g. Cash dividends of $54.000 were paid to shareholders. h. On November 44,000 shares of common stock were repurchased as treasury stock at a cost of $22,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Required:
Prepare the statement of cash flows for Dux Company using the Indirect method. (Do not round Intermediate calculations. Amounts
to be deducted should be indicated with a minus sign. Enter your answers in thousands. (1.e., 10,000 should be entered as 10).))
DUX COMPANY
Statement of Cash Flows
For year ended December 31, 2018 ($ in 000s)
Cash flows from operating activities:
Net income
Adjustments for noncash effects:
Amortization of discount
Depreciation expense
Loss on sale of building
Changes in operating assets and liabilities:
Net cash flows from operating activities
Cash flows from investing activities:
Purchase of equipment
Purchase of long-term investment
Sale of building
Sale of bonds payable
Net cash flows from investing activities
Cash flows from financing activities:
Sale of bonds payable
Payment of cash dividends
Net cash flows from financing activities
Net increase in cash
Cash balance, January 1
Cash balance, December 31
Noncash investing and financing activities:
S
68
33
6
$
$
107
0
0
0
Transcribed Image Text:The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company.
Additional information from Dux's accounting records is provided also.
Assets
Cash
Accounts receivable
Less: Allowance for uncollectible accounts
Dividends receivable
Inventory
Long-term investment
Land
Buildings and equipment
Less: Accumulated depreciation
Liabilities
Accounts payable
Salaries payable
Interest payable
Income tax payable
Notes payable
Bonds payable
Less: Discount on bonds
Shareholders' Equity
Common stock
Paid-in capital-excess of par
Retained earnings
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 900s)
Less: Treasury stock
DUX COMPANY
Income Statement
For Year Ended December 31, 2018
($ in 800s)
Revenues
Sales revenue
Dividend revenue
Expenses
Cost of goods sold.
Salaries expense
Depreciation expense
Bad debt expense
Interest expense
Loss on sale of building
Income tax expense
Net income
$325
9 $334
134
39
33
1
22
6
31
266
$68
2018
$ 61 $34
58
(3)
3
83
43
131
211
(39)
$ 548
$27
3
5
21
61
123
(16)
224
36
86
(22)
2017
$ 548
75
(2)
1
64
24
70
278
(78)
$ 466
$48
5
2
26
e
84
(31)
214
34
84
0
$ 466
Additional information from the accounting records:
a. A building that originally cost $96.000, and which was three-fourths depreciated, was sold for $18,000.
b. The common stock of Byrd Corporation was purchased for $19,000 as a long-term investment.
c. Property was acquired by issuing a 10%, seven-year. $61,000 note payable to the seller.
d. New equipment was purchased for $29,000 cash.
e. On January 1, 2018, bonds were sold at their $39,000 face value.
f. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per
share at that time.
g. Cash dividends of $54,000 were paid to shareholders.
h. On November 44,000 shares of common stock were repurchased as treasury stock at a cost of $22,000.
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