The comparative balance sheets for 2013 and 2012 and the statement of income for
ID: 2492416 • 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.
DUX COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
2013
2012
Assets
Cash
$
60
$
39
Accounts receivable
50
74
Dividends receivable
5
4
Inventory
90
85
Long-term investment
52
46
Land
95
75
Buildings and equipment
175
220
Less: Accumulated depreciation
(52
)
(90
)
$
475
$
453
Liabilities
Accounts payable
$
37
$
64
Salaries payable
2
7
Interest payable
10
4
Income tax payable
10
11
Notes payable
20
0
Bonds payable
85
60
Less: Discount on bonds
(3
)
(4
)
Shareholders' Equity
Common stock
210
200
Paid-in capital—excess of par
24
20
Retained earnings
88
91
Less: Treasury stock
(8
)
0
$
475
$
453
DUX COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
Revenues
Sales revenue
$
350
Dividend revenue
5
$
355
Expenses
Cost of goods sold
$
235
Salaries expense
34
Depreciation expense
7
Interest expense
8
Loss on sale of building
2
Income tax expense
$
44
330
Net income
$
25
Additional information from the accounting records:
a.
A building that originally cost $60,000, and which was three-fourths depreciated, was sold for $13,000.
b.
The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment.
c.
Property was acquired by issuing a 13%, seven-year, $20,000 note payable to the seller.
d.
New equipment was purchased for $15,000 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 $8,000.
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.
DUX COMPANY
STATEMENT OF CASH FLOWS
CASH FLOW FROM OPERATING ACTIVITIES:
CASH INFLOWS:
FROM DEVIDEND RECEIVED ??????
FROM CUSTOMERS ??????
CASH OUTFLOWS:
TO SUPPLYERS OF GOODS ??????
TO EMPLOYEES ??????
FOR INTEREST ??????
FOR INCOME TAXES ?????
PLEASE HELP ME WITH MY ?????
OTHER PART OF THIS TABLE I SOLVE, BUT THIS PART I CAN’T DO(((((
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
DUX COMPANY STATEMENT OF CASH FLOWS CASH FLOW FROM OPERATING ACTIVITIES: CASH INFLOWS: FROM DEVIDEND RECEIVED 4 (2012 dividend has been received) FROM CUSTOMERS 74 (2012 account received) CASH OUTFLOWS: TO SUPPLYERS OF GOODS 64 (2012 account payable) TO EMPLOYEES 7 (2012 wages payable) FOR INTEREST 4 (2012 interest payable) FOR INCOME TAXES 11 (2012 income tax payable) Note: 2012 dividend has been received otherwise the total dividend receivable in 2013 would have been 9(5+4)