The comparative balance sheets for 2013 and 2012 and the statement of income for
ID: 2457141 • Letter: T
Question
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.
A building that originally cost $60,000, and which was three-fourths depreciated, was sold for $13,000.
The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment.
Property was acquired by issuing a 13%, seven-year, $20,000 note payable to the seller.
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.
On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $8,000.
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.)
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.
Explanation / Answer
Statement of cash flows
Net income $25 Add: Depreciation $7 loss on sale of building $2 Decrease in bond discount $1 Increase in accounts receivable $24 Increase in interest payable $6 Less: increase in dividend recievable -1 decrease in Accounts payable -27 increase in inventroy -5 increase is salaries payable -5 increase in income tax payable -1 Net cash flow from operating activities $26 Net cash flow from investing activities: Purchase of long term investment -6 Purchase of new equipment -15 Cash from sale of building 13 Net cash flow from investing activities -8 Net cash flow from financing activities : Cash from sale of bonds 25 Treasury stock purchased -8 Cash dividends paid -14 Net cash floe from financing activities $3 Net cash flow $21 Add: Cash at the beginning $39 Cash at the end $60