The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 114 $ 46 Accounts receivable 45 67 Less: Allowance for uncollectible accounts (5) (4) Dividends receivable 3 2 Inventory 80 75 Long-term investment 48 42 Land 75 65 Buildings and equipment 188 200 Less: Accumulated depreciation (66) (100) $ 482 $ 393 Liabilities Accounts payable $ 10 $ 24 Salaries payable 1 5 Interest payable 8 2 Income tax payable 8 9 Notes payable 10 0 Bonds payable 60 50 Less: Discount on bonds (1) (2) Shareholders' Equity Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 155 85 Less: Treasury stock (3) 0 $ 482 $ 393 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 360 Dividend revenue 3 $ 363 Expenses Cost of goods sold 200 Salaries expense 30 Depreciation expense 5 Bad debt expense 1 Interest expense 8 Loss on sale of building 2 Income tax expense 27 273 Net income $ 90 Additional information from the accounting records: A building that originally cost $52,000, and which was three-fourths depreciated, was sold for $11,000. The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment. Property was acquired by issuing a 14%, seven-year, $10,000 note payable to the seller. New equipment was purchased for $40,000 cash. On January 1, 2024, bonds were sold at their $10,000 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 $6,000 were paid to shareholders. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $3,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 114 $ 46 Accounts receivable 45 67 Less: Allowance for uncollectible accounts (5) (4) Dividends receivable 3 2 Inventory 80 75 Long-term investment 48 42 Land 75 65 Buildings and equipment 188 200 Less: Accumulated depreciation (66) (100) $ 482 $ 393 Liabilities Accounts payable $ 10 $ 24 Salaries payable 1 5 Interest payable 8 2 Income tax payable 8 9 Notes payable 10 0 Bonds payable 60 50 Less: Discount on bonds (1) (2) Shareholders' Equity Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 155 85 Less: Treasury stock (3) 0 $ 482 $ 393 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 360 Dividend revenue 3 $ 363 Expenses Cost of goods sold 200 Salaries expense 30 Depreciation expense 5 Bad debt expense 1 Interest expense 8 Loss on sale of building 2 Income tax expense 27 273 Net income $ 90 Additional information from the accounting records: A building that originally cost $52,000, and which was three-fourths depreciated, was sold for $11,000. The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment. Property was acquired by issuing a 14%, seven-year, $10,000 note payable to the seller. New equipment was purchased for $40,000 cash. On January 1, 2024, bonds were sold at their $10,000 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 $6,000 were paid to shareholders. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $3,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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DUX COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in thousands)
	2024	2023
Assets
Cash	$ 114	$ 46
Accounts receivable	45	67
Less: Allowance for uncollectible accounts	(5)	(4)
Dividends receivable	3	2
Inventory	80	75
Long-term investment	48	42
Land	75	65
Buildings and equipment	188	200
Less: Accumulated depreciation	(66)	(100)
	$ 482	$ 393
Liabilities
Accounts payable	$ 10	$ 24
Salaries payable	1	5
Interest payable	8	2
Income tax payable	8	9
Notes payable	10	0
Bonds payable	60	50
Less: Discount on bonds	(1)	(2)
Shareholders' Equity
Common stock	210	200
Paid-in capital—excess of par	24	20
Retained earnings	155	85
Less: Treasury stock	(3)	0
	$ 482	$ 393

DUX COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in thousands)
Revenues
Sales revenue	$ 360
Dividend revenue	3	$ 363
Expenses
Cost of goods sold	200
Salaries expense	30
Depreciation expense	5
Bad debt expense	1
Interest expense	8
Loss on sale of building	2
Income tax expense	27	273
Net income		$ 90

Additional information from the accounting records:

A building that originally cost $52,000, and which was three-fourths depreciated, was sold for $11,000.
The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment.
Property was acquired by issuing a 14%, seven-year, $10,000 note payable to the seller.
New equipment was purchased for $40,000 cash.
On January 1, 2024, bonds were sold at their $10,000 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 $6,000 were paid to shareholders.
On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $3,000.

Required:

Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

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