FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:

  1. A building that originally cost $36,000, and which was three-fourths depreciated, was sold for $2,000.
  2. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.
  3. Property was acquired by issuing a 13%, seven-year, $25,000 note payable to the seller.
  4. New equipment was purchased for $19,000 cash.
  5. On January 1, 2024, bonds were sold at their $25,000 face value.
  6. 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.
  7. Cash dividends of $11,000 were paid to shareholders.
  8. 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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