DUX COMPANY _statement of cash flows

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

$

36

$

26

  Accounts receivable

48

53

  Dividends receivable

5

4

  Inventory

85

80

  Long-term investment

26

22

  Land

100

70

  Buildings and equipment

187

210

       Less: Accumulated depreciation

(26

)

(50

)

$

461

$

415

  Liabilities

  Accounts payable

$

62

$

73

  Salaries payable

5

9

  Interest payable

8

4

  Income tax payable

4

6

  Notes payable

30

0

  Bonds payable

75

50

       Less: Discount on bonds

(1

)

(2

)

  Shareholders' Equity

  Common stock

210

200

  Paid-in capital—excess of par

24

20

  Retained earnings

54

55

       Less: Treasury stock

(10

)

0

$

461

$

415

DUX COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in 000s)

  Revenues

     Sales revenue

$

260

     Dividend revenue

5

$

265

  Expenses

     Cost of goods sold

$

150

     Salaries expense

37

     Depreciation expense

9

     Interest expense

8

     Loss on sale of building

4

     Income tax expense

$

30

238

  Net income

$

27

Additional information from the accounting records:

a.

A building that originally cost $44,000, and which was three-fourths depreciated, was sold for $7,000.

b.

The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment.

c.

Property was acquired by issuing a 15%, seven-year, $30,000 note payable to the seller.

d.

New equipment was purchased for $21,000 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 $14,000 were paid to shareholders.

h.

On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $10,000.

Required:

Prepare the statement of cash flows for Dux Company. (Hint: Use the T-account method to assist in your analysis.) (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)