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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.)

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.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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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.)

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) 2021 2020 Assets Cash $ 65 $ 22 Accounts receivable 33 52 Less: Allowance for uncollectible accounts (4) (3) Dividends receivable Inventory Long-term investment 5 4 45 40 18 14 Land 65 50 Buildings and equipment Less: Accumulated depreciation 259 270 (54) (70) $ 432 $ 379 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds $ 21 $ 23 2 5 7 4 7 15 105 80 (2) (3) Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings 24 20 50 43 (6) $ 432 Less: Treasury stock $ 379 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues $ 220 5 $ 225 Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense 130 29 1 7 3 14 189 Net income $ 36
Transcribed Image Text: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) 2021 2020 Assets Cash $ 65 $ 22 Accounts receivable 33 52 Less: Allowance for uncollectible accounts (4) (3) Dividends receivable Inventory Long-term investment 5 4 45 40 18 14 Land 65 50 Buildings and equipment Less: Accumulated depreciation 259 270 (54) (70) $ 432 $ 379 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds $ 21 $ 23 2 5 7 4 7 15 105 80 (2) (3) Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings 24 20 50 43 (6) $ 432 Less: Treasury stock $ 379 DUX COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Revenues $ 220 5 $ 225 Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense 130 29 1 7 3 14 189 Net income $ 36
Additional information from the accounting records: a. A building that originally cost $28,000, and which was three-fourths depreciated, was sold for $4,000. b. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment. c. Property was acquired by issuing a 11%, seven-year, $15,000 note payable to the seller. d. New equipment was purchased for $17,000 cash. e. On January 1, 2021, bonds were sold 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 per share at that time. g. Cash dividends of $15,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $6,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) DUX COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities
Transcribed Image Text:Additional information from the accounting records: a. A building that originally cost $28,000, and which was three-fourths depreciated, was sold for $4,000. b. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment. c. Property was acquired by issuing a 11%, seven-year, $15,000 note payable to the seller. d. New equipment was purchased for $17,000 cash. e. On January 1, 2021, bonds were sold 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 per share at that time. g. Cash dividends of $15,000 were paid to shareholders. h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $6,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) DUX COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities
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