The comparative balance sheets for 2016 and 2015 and the statement of income for
ID: 2469452 • Letter: T
Question
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
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, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2016. 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 2016 and 2015 and the statement of income for 2016 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
Explanation / Answer
(Amount in '000) DUX Company Cash flow Statement For the Year Ended Dec 31, 2016 Cash Flow From opearting Activities Cash recd from Cutomers 203 Cash Paid to Suppliers (132) Cash Paid For Salaries (28) Cash Paid for Interest (5) Cash Paid for I Tax (18) Cash Flow from Operating Activities 20 Cash flow from Investing Activities Cash recd from Dividend 2 Purchase of long Term Investment (5) Purchase of New Equipment (15) Sale of Building 7 Cash Flow / (used) from Investing activities (11) Cash Flow from Financing Activities Cash Dividends Paid (13) Purchase of Treasury Stock (8) Receipts from Isssue of bonds 25 Cash Flow from Financing Activities 4 Net Increase / (Decrease) in Cash 13 Cash balance as on Jan 1, 2016 20 Cash Balance as on Dec 31, 2016 33 Calculation of Cash Recd. From Customers Sales Revenue 200 Add: Opening Accounts Receivables 47 Total Due to Customers 247 Less: Closing Accounts Receivable (44) Cash recd from Customers 203 Calculation of cash Paid to Suppliers Cost of Goods Sold 120 Add: Closing Inventory 55 175 Less: opening Inventory (50) Purchases made during the year 125 Add: Opening Accounts Payable 20 Total amount Due 145 Less: Closing Accounts Payable (13) Cash payment to Suppliers 132 Calculation of Cash paid for Salaries Salaries Expenses 25 Add: Opening Salaries Payable 5 Total salary due 30 Less: Closing Salaries Payable (2) Cash paid for Salaries 28 Calculation of Cash Paid for Interest Interest Expense 8 Add: Opening Interets Payable 2 Add: Closing Balance of Discount on Bonds 2 Total Interest due 12 Less: Closing Interest Payable (4) Less: Closing Balance of Discount on Bonds (3) Cash paid for Interest 5 Calculation of Cash Paid for Income Tax Income Tax Expense 17 Add: Opening Income tax Payable 8 Total Income tax due 25 Less: Closing Income tax payable (7) Cash paid for Income tax payable 18 Calculation of Cash Recd from Dividends Dividend Revenue 3 Add: Opening Dividend receivable 2 Total Dividend Receivable 5 Less: Closing Dividend receivables (3) Cash recd from Dividends 2 Buildings & Equipments To Balance B/f 250 By Accumulated dep. 30 To Cash 15 By Cash 7 By Loss on Sale of Building 3 By Balance C/f 225 265 265 Accumulated Dep. To Building & Equipments 30 By Balance B/f 50 To Balance C/f 25 By Dep. Exp. 5 55 55