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 $ 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, 2024 ($ 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, 2024, 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, 2024. Present cash flows from operating activities by the direct method. Note: 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.

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 $ 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, 2024 ($ 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, 2024, 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, 2024. Present cash flows from operating activities by the direct method. Note: 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.

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	$ 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, 2024
($ 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, 2024, 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, 2024. Present cash flows from operating activities by the direct method.

Note: 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.

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