DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 49 $ 24 Accounts receivable 46 53 Less: Allowance for uncollectible accounts (3 ) (2 ) Dividends receivable 3 2 Inventory 65 60 Long-term investment 21 18 Land 85 60 Buildings and equipment 273 290 Less: Accumulated depreciation (70 ) (90 ) $ 469 $ 415 Liabilities Accounts payable $ 35 $ 43 Salaries payable 3 7 Interest payable 7 2 Income tax payable 8 9 Notes payable 25 0 Bonds payable 115 90 Less: Discount on bonds (4 ) (5 ) Shareholders' Equity Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 54 49 Less: Treasury stock (8 ) 0 $ 469 $ 415 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue$240 Dividend revenue 3 $243 Expenses Cost of goods sold 140 Salaries expense 33 Depreciation expense 7 Bad debt expense 1 Interest expense 9 Loss on sale of building 7 Income tax expense 16 213 Net income $30 Additional information from the accounting records: A building that originally cost $36,000, and which was three-fourths depreciated, was sold for $2,000. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment. Property was acquired by issuing a 13%, seven-year, $25,000 note payable to the seller. New equipment was purchased for $19,000 cash. On January 1, 2021, bonds were sold at their $25,000 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 $11,000 were paid to shareholders. 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, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 49 $ 24 Accounts receivable 46 53 Less: Allowance for uncollectible accounts (3 ) (2 ) Dividends receivable 3 2 Inventory 65 60 Long-term investment 21 18 Land 85 60 Buildings and equipment 273 290 Less: Accumulated depreciation (70 ) (90 ) $ 469 $ 415 Liabilities Accounts payable $ 35 $ 43 Salaries payable 3 7 Interest payable 7 2 Income tax payable 8 9 Notes payable 25 0 Bonds payable 115 90 Less: Discount on bonds (4 ) (5 ) Shareholders' Equity Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 54 49 Less: Treasury stock (8 ) 0 $ 469 $ 415 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues Sales revenue$240 Dividend revenue 3 $243 Expenses Cost of goods sold 140 Salaries expense 33 Depreciation expense 7 Bad debt expense 1 Interest expense 9 Loss on sale of building 7 Income tax expense 16 213 Net income $30 Additional information from the accounting records: A building that originally cost $36,000, and which was three-fourths depreciated, was sold for $2,000. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment. Property was acquired by issuing a 13%, seven-year, $25,000 note payable to the seller. New equipment was purchased for $19,000 cash. On January 1, 2021, bonds were sold at their $25,000 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 $11,000 were paid to shareholders. 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, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands)
	2021		2020
Assets
Cash	$	49		$	24
Accounts receivable		46			53
Less: Allowance for uncollectible accounts		(3	)		(2	)
Dividends receivable		3			2
Inventory		65			60
Long-term investment		21			18
Land		85			60
Buildings and equipment		273			290
Less: Accumulated depreciation		(70	)		(90	)
	$	469		$	415
Liabilities
Accounts payable	$	35		$	43
Salaries payable		3			7
Interest payable		7			2
Income tax payable		8			9
Notes payable		25			0
Bonds payable		115			90
Less: Discount on bonds		(4	)		(5	)
Shareholders' Equity
Common stock		210			200
Paid-in capital—excess of par		24			20
Retained earnings		54			49
Less: Treasury stock		(8	)		0
	$	469		$	415

DUX COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)

Revenues

Sales revenue$240

Dividend revenue 3 $243

Expenses

Cost of goods sold 140

Salaries expense 33

Depreciation expense 7

Bad debt expense 1

Interest expense 9

Loss on sale of building 7

Income tax expense 16 213

Net income $30

Additional information from the accounting records:

A building that originally cost $36,000, and which was three-fourths depreciated, was sold for $2,000.
The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.
Property was acquired by issuing a 13%, seven-year, $25,000 note payable to the seller.
New equipment was purchased for $19,000 cash.
On January 1, 2021, bonds were sold at their $25,000 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 $11,000 were paid to shareholders.
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, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
DUX COMPANY
Statement of Cash Flows
2021
2020
For the year ended December 31, 2021
Assets
$ 49
$ 24
(S in thousands)
Cash
Accounts receivable
46
53
Cash flows from operating activities:
Less: Allowance for uncollectible accounts
(3)
(2)
Cash inflows:
Dividends receivable
3
2
Inventory
Long-term investment
65
60
21
18
Land
85
60
Buildings and equipment
Less: Accumulated depreciation
273
290
(70)
(90)
$ 415
Cash outflows:
$ 469
Liabilities
Accounts payable
Salaries payable
Interest payable
Income tax payable
Notes payable
Bonds payable
24
35
$4
43
3
7
2
8
25
115
90
Less: Discount on bonds
Shareholders' Equity
(4)
(5)
Common stock
210
200
Paid-in capital-excess of par
Retained earnings
24
20
Net cash flows from operating activities
$
54
49
Cash flows from investing activities:
(8)
$ 469
Less: Treasury stock
$ 415
DUX COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Revenues
Net cash flows from investing activities
$ 240
3 $ 243
Sales revenue
Dividend revenue
Cash flows from financing activities:
Expenses
Cost of goods sold
Salaries expense
140
33
Depreciation expense
Bad debt expense
7
1
Interest expense
9
Loss on sale of building
Income tax expense
16
213
$ 30
Net cash flows from financing activities
Net income
Net increase (decrease) in cash
Cash balance, January 1
Cash balance, December 31
$
Noncash investing and financing activities:

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