The comparative balance sheets for 2016 and 2015 and thestatement of income for 2016 are given below for Dux Company.Additional information from Dux's accounting records is providedalso.
DUX COMPANY
Comparative Balance Sheets
December 31, 2016 and 2015
($ in 000s) 2016 2015 Assets Cash $ 59 $ 23 Accountsreceivable 34 50 Dividendsreceivable 6 5 Inventory 55 50 Long-terminvestment 19 16 Land 75 55 Buildings andequipment 266 280 Less: Accumulateddepreciation (62) (80) $ 452 $ 399 Liabilities Accountspayable $ 31 $ 33 Salariespayable 1 6 Interestpayable 8 5 Income taxpayable 7 8 Notes payable 20 0 Bonds payable 110 85 Less: Discount on bonds (3) (4) Shareholders' Equity Common stock 210 200 Paid-incapitalâexcess of par 24 20 Retainedearnings 51 46 Less: Treasury stock (atcost) (7) 0 $ 452 $ 399
DUX COMPANY
Income Statement
For Year Ended December 31, 2016
($ in 000s) Revenues Sales revenue $ 230 Dividend revenue 6 $ 236 Expenses Cost of goods sold 135 Salaries expense 31 Depreciation expense 6 Interest expense 8 Loss on sale of building 5 Income tax expense 16 201 Netincome $ 35
Additional information fromthe accounting records:
a. A building that originally cost$32,000, and which was three-fourths depreciated, was sold for$3,000. b. The common stock of ByrdCorporation was purchased for $3,000 as a long-terminvestment. c. Property was acquired by issuinga 12%, seven-year, $20,000 note payable to the seller. d. New equipment was purchased for$18,000 cash. e. On January 1, 2016, bonds weresold at their $25,000 face value. f. On January 19, Dux issued a 5% stock dividend (1,000 shares).The market price of the $10 par value common stock was $14 pershare at that time.
g. Cash dividends of $16,000 werepaid to shareholders. h. On November 12, 500 shares of common stock were repurchased astreasury stock at a cost of $7,000.
Required: Prepare the statement of cash flows of Dux Company for the yearended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Do not round yourintermediate calculations. Enter your answers in thousands (i.e.,5,000 should be entered as 5). Amounts to be deducted should beindicated with a minus sign.)
The comparative balance sheets for 2016 and 2015 and thestatement of income for 2016 are given below for Dux Company.Additional information from Dux's accounting records is providedalso. |
DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) | ||||
2016 | 2015 | |||
Assets | ||||
Cash | $ | 59 | $ | 23 |
Accountsreceivable | 34 | 50 | ||
Dividendsreceivable | 6 | 5 | ||
Inventory | 55 | 50 | ||
Long-terminvestment | 19 | 16 | ||
Land | 75 | 55 | ||
Buildings andequipment | 266 | 280 | ||
Less: Accumulateddepreciation | (62) | (80) | ||
$ | 452 | $ | 399 | |
Liabilities | ||||
Accountspayable | $ | 31 | $ | 33 |
Salariespayable | 1 | 6 | ||
Interestpayable | 8 | 5 | ||
Income taxpayable | 7 | 8 | ||
Notes payable | 20 | 0 | ||
Bonds payable | 110 | 85 | ||
Less: Discount on bonds | (3) | (4) | ||
Shareholders' Equity | ||||
Common stock | 210 | 200 | ||
Paid-incapitalâexcess of par | 24 | 20 | ||
Retainedearnings | 51 | 46 | ||
Less: Treasury stock (atcost) | (7) | 0 | ||
$ | 452 | $ | 399 | |
DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) | ||||
Revenues | ||||
Sales revenue | $ | 230 | ||
Dividend revenue | 6 | $ | 236 | |
Expenses | ||||
Cost of goods sold | 135 | |||
Salaries expense | 31 | |||
Depreciation expense | 6 | |||
Interest expense | 8 | |||
Loss on sale of building | 5 | |||
Income tax expense | 16 | 201 | ||
Netincome | $ | 35 | ||
Additional information fromthe accounting records: |
a. | A building that originally cost$32,000, and which was three-fourths depreciated, was sold for$3,000. |
b. | The common stock of ByrdCorporation was purchased for $3,000 as a long-terminvestment. |
c. | Property was acquired by issuinga 12%, seven-year, $20,000 note payable to the seller. |
d. | New equipment was purchased for$18,000 cash. |
e. | On January 1, 2016, bonds weresold at their $25,000 face value. |
f. | On January 19, Dux issued a 5% stock dividend (1,000 shares).The market price of the $10 par value common stock was $14 pershare at that time. |
g. | Cash dividends of $16,000 werepaid to shareholders. |
h. | On November 12, 500 shares of common stock were repurchased astreasury stock at a cost of $7,000. |
Required: |
Prepare the statement of cash flows of Dux Company for the yearended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Do not round yourintermediate calculations. Enter your answers in thousands (i.e.,5,000 should be entered as 5). Amounts to be deducted should beindicated with a minus sign.) |