In: Accounting
The comparative balance sheets for 2021 and 2020 and the
statement of income for 2021 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) |
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2021 | 2020 | |||||||
Assets | ||||||||
Cash | $ | 33 | $ | 20 | ||||
Accounts receivable | 48 | 50 | ||||||
Less: Allowance for uncollectible accounts | (4 | ) | (3 | ) | ||||
Dividends receivable | 3 | 2 | ||||||
Inventory | 55 | 50 | ||||||
Long-term investment | 15 | 10 | ||||||
Land | 70 | 40 | ||||||
Buildings and equipment | 225 | 250 | ||||||
Less: Accumulated depreciation | (25 | ) | (50 | ) | ||||
$ | 420 | $ | 369 | |||||
Liabilities | ||||||||
Accounts payable | $ | 13 | $ | 20 | ||||
Salaries payable | 2 | 5 | ||||||
Interest payable | 4 | 2 | ||||||
Income tax payable | 7 | 8 | ||||||
Notes payable | 30 | 0 | ||||||
Bonds payable | 95 | 70 | ||||||
Less: Discount on bonds | (2 | ) | (3 | ) | ||||
Shareholders' Equity | ||||||||
Common stock | 210 | 200 | ||||||
Paid-in capital—excess of par | 24 | 20 | ||||||
Retained earnings | 45 | 47 | ||||||
Less: Treasury stock | (8 | ) | 0 | |||||
$ | 420 | $ | 369 | |||||
DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) |
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Revenues | ||||||
Sales revenue | $ | 200 | ||||
Dividend revenue | 3 | $ | 203 | |||
Expenses | ||||||
Cost of goods sold | 120 | |||||
Salaries expense | 25 | |||||
Depreciation expense | 5 | |||||
Bad debt expense | 1 | |||||
Interest expense | 8 | |||||
Loss on sale of building | 3 | |||||
Income tax expense | 16 | 178 | ||||
Net income | $ | 25 | ||||
Additional information from the accounting records:
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.)