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The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

DUX COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
    2013   2012
  Assets        
  Cash $ 71    $ 27   
  Accounts receivable   38      54   
  Dividends receivable   6      5   
  Inventory   95      90   
  Long-term investment   27      24   
  Land   95      75   
  Buildings and equipment   194      220   
      Less: Accumulated depreciation   (34)   (60)
         
  $ 492    $ 435   
         
  Liabilities        
  Accounts payable $ 76    $ 83   
  Salaries payable   7      10   
  Interest payable   10      5   
  Income tax payable   5      7   
  Notes payable   20      0   
  Bonds payable   80      55   
      Less: Discount on bonds   (2)   (3)
  Shareholders' Equity        
  Common stock   210      200   
  Paid-in capital—excess of par   24      20   
  Retained earnings   73      58   
      Less: Treasury stock (at cost)   (11)   0   
         
  $ 492    $ 435   
         
 
DUX COMPANY
Income Statement
For Year Ended December 31, 2013
($ in 000s)
  Revenues        
     Sales revenue $ 270       
     Dividend revenue   6    $ 276   
         
  Expenses        
     Cost of goods sold   155       
     Salaries expense   39       
     Depreciation expense   10       
     Interest expense   8       
     Loss on sale of building   4       
     Income tax expense   20      236   
         
  Net income     $ 40   
         
 
Additional information from the accounting records:
a. A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $8,000.
b. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.
c. Property was acquired by issuing a 10%, seven-year, $20,000 note payable to the seller.
d. New equipment was purchased for $22,000 cash.
e. On January 1, 2013, 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 $11,000 were paid to shareholders.
h.

On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $11,000.

Required:

Prepare the statement of cash flows of Dux Company for the year ended December 31, 2013. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.) (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Jul 25 2021 View more View Less

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