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					63	35
Accounts receivable					59	77
Less: Allowance for uncollectible accounts					-4	-3
Dividends receivable					2	1
Inventory					85	65
Long-term investment					45	25
Land					136	71
Buildings and equipment					210	280
Less: Accumulated depreciation					-40	-80	)
					556	471
Liabilities
Accounts payable					28	50
Salaries payable					2	7
Interest payable					4	3
Income tax payable					22	23
Notes payable					65	0
Bonds payable					125	85
Less: Discount on bonds					-17	-33
Shareholders' Equity
Common stock					225	215
Paid-in capital—excess of par					37	35
Retained earnings					88	86
Less: Treasury stock					-23	0
					556	471
DUX COMPANY
Income Statement
For Year Ended December 31, 2018
($ in 000s)
Revenues
Sales revenue			333
Dividend revenue			6	$339
Expenses
Cost of goods sold			135
Salaries expense			40
Depreciation expense			35
Bad debt expense			1
Interest expense			23
Loss on sale of building			4
Income tax expense			32	270
Net income				$69.00
Additional information from the accounting records:
A. A building that originally cost $100,000, and which was three-fourths depreciated, was sold for $21,000.
B. The common stock of Byrd Corporation was purchased for $20,000 as a long-term investment.
C. Property was acquired by issuing a 14%, seven-year, $65,000 note payable to the seller.
D. New equipment was purchased for $30,000 cash.
E. On January 1, 2018, bonds were sold at their $40,000 face value.
F. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per share at that time.
G. Cash dividends of $55,000 were paid to shareholders.
H. On November 46,000 shares of common stock were repurchased as treasury stock at a cost of $23,000.
Required:
Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).))
DUX COMPANY
STATEMENT OF CASH FLOWS
For Year Ended December 31, 2018 ($ IN 000s)
Adjustment for noncash effects:
Changes in operating assets and liabilities:
Cash balance, January 1
Noncash investing and financing activities:

Answer 1

DUX COMPANY
Statement of Cash Flows
For the Year Ended Dec 31 2018
Cash Flows from Operating Activities								Amount
Net Income							69
Adjustment to reconcile net income with Operating Activities:-
Depreciation							35
Loss on sale of Building							4
Allowance for uncollectible accounts							1
Interest expense							23
Dividend received							-6
Changes in current operating assests and liabilities
Decrease in accounts receivable							18
Increase in Dividend Receivable							-1
Increase in Inventories							-20
Decrease in accounts payable							-22
Decrease in Salary payable							-5
Increase in Interest Payable							1
Decrease in Income tax payable							-1
Net cash Flow from operating Activities								96
Cash Flows from Investing Activities
Cash paid from purchase of Equipement							-30
Cash received from Sale of Building							21
Dividend received							6
Cash paid for Investment Purchased							-20
Net cash Flow from investing Activities								-23
Cash Flows from financing Activities
Cash Received from Sale of Common Stock							12
Purchase of Treasuary stock							-23
Dividend paid							-51
Interest Expense							-23
Cash received from issue of Bond							40
Net cash Flow from financing Activities								-45
Increase in Cash								28
cash at beginning of year								35
cash at end of year								63
Noncash investing and financing activities:
Cash paid from purchase of land							-65
Cash received issue from Note							65