Question

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.

DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s)
	2018				2017
Assets
Cash	$	71			$	39
Accounts receivable		63				85
Less: Allowance for uncollectible accounts		(4	)			(3	)
Dividends receivable		5				3
Inventory		93				69
Long-term investment		53				29
Land		149				75
Buildings and equipment		206				288
Less: Accumulated depreciation		(44	)			(88	)
	$	592			$	497
Liabilities
Accounts payable	$	32			$	58
Salaries payable		5				8
Interest payable		7				5
Income tax payable		26				30
Notes payable		74				0
Bonds payable		133				89
Less: Discount on bonds		(21	)			(41	)
Shareholders' Equity
Common stock		229				219
Paid-in capital—excess of par		42				39
Retained earnings		92				90
Less: Treasury stock		(27	)			0
	$	592			$	497

DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s)
Revenues
Sales revenue	$	370
Dividend revenue		8		$	378
Expenses
Cost of goods sold		139
Salaries expense		44
Depreciation expense		43
Bad debt expense		1
Interest expense		27
Loss on sale of building		5
Income tax expense		36			295
Net income				$	83

Additional information from the accounting records:

1. A building that originally cost $116,000, and which was three-fourths depreciated, was sold for $24,000.
2. The common stock of Byrd Corporation was purchased for $24,000 as a long-term investment.
3. Property was acquired by issuing a 10%, seven-year, $74,000 note payable to the seller.
4. New equipment was purchased for $34,000 cash.
5. On January 1, 2018, bonds were sold at their $44,000 face value.
6. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $13 per share at that time.
7. Cash dividends of $68,000 were paid to shareholders.
8. On November 54,000 shares of common stock were repurchased as treasury stock at a cost of $27,000.

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. (i.e., 10,000 should be entered as 10).))

	DUX COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in 000s) Adjustments for noncash effects: Changes in operating assets and liabilities: $0 0 0 Cash balance, January 1 $0 Noncash investing and financing activities:

Answer 1