Prepare the statement of cash flows for Dux Company using the indirect method. (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).) 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 COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands)20212020AssetsCash$105.0$ 32.0Accounts receivable60.062.0Less: Allowance for uncollectible accountsDividends receivable(5.0)(4.0)15.014.0InventoryLong-term investment67.062.022.027.0Land82.040.0Buildings and equipmentLess: Accumulated depreciation177.0262.0(11.0) (110.0)$517.0 $ 380.0Liabilities$ 25.0$ 32.0Accounts payableSalaries payableInterest payableIncome tax payableNotes payableBonds payableLess: Discount on bonds14.017.016.014.019.020.042.095.058.0(2.0)(3.0)Shareholders' EquityCommon stock210.0200.0Paid-in capital-excess of parRetained earnings24.020.082.022.0Less: Treasury stock(8.0)$517.0$ 380.0DUX COMPANYIncome StatementFor the Year Ended December 31, 2021($ in thousands)RevenuesSales revenue$380.0Dividend revenue15.0$395.0ExpensesCost of goods soldSalaries expenseDepreciation expenseBad debt expenseInterest expenseLoss on sale of buildingIncome tax expense144.049.03.01.032.027.040.0296.0Net income$ 99.0 Additional information from the accounting records:a. A building that originally cost $136,000, and which was three-fourths depreciated, was sold for $7,000.b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.c. Property was acquired by issuing a 13%, seven-year, $42,000 note payable to the seller.d. New equipment was purchased for $51,000 cash.e. On January 1, 2021, bonds were sold at their $37,000 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 $25,000 were paid to shareholders.h. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000.Required:Prepare the statement of cash flows for Dux Company using the indirect method. (Amounts to be deducted should be indicated witha minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).)DUX COMPANYStatement of Cash FlowsFor year ended December 31, 2021 (S in 000s)Cash flows from operating activities:Net incomeAdjustments for noncash effects,Changes in operating assets and liabilities:Net cash flows from operating activitiesCash flows from investing activities:

Cash Flow Statement is very important to know how cash was utilized and how the cash was generated…

Prepare the statement of cash flows for Dux Company using the indirect method. (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).)

Prepare the statement of cash flows for Dux Company using the indirect method. (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).)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 20P

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