The comparative balance sheets for 2013 and 2012 and the statement of income for
ID: 2501689 • 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 $8,000.
Prepare the statement of cash flows for Dux Company. (Hint: Use the T-account method to assist in your analysis.) (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)?????
DUX COMPANY STATEMENT OF CASH FLOWS??
DUX COMPANYComparative Balance Sheets
December 31, 2013 and 2012
($ 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
Explanation / Answer
Cash Flow from operating activities
Net income 25
(+) Depriciation of asset 7
(+) Loss on sale of asset 2
(+) Decrease in current asset and increase in current liabilities
Interest payable 6
Notes Payable 20
Bonds payable 25
Accounts receivable 24
(-) Increase in current asset and decrease in current liabilities
stock 05
Bonds receivable 01 103
Cash Flow from investing activities
Euipment purchased (15)
Equipment sold 13 (2)
Cash Flow from Financing activities
Purchase of common stock (8)
Redemption of bond (25)
investment (6) (39)
cash flow during the year 62
opening cash in hand 39
closing cash in hand 60
Particulars AmountCash Flow from operating activities
Net income 25
(+) Depriciation of asset 7
(+) Loss on sale of asset 2
(+) Decrease in current asset and increase in current liabilities
Interest payable 6
Notes Payable 20
Bonds payable 25
Accounts receivable 24
(-) Increase in current asset and decrease in current liabilities
stock 05
Bonds receivable 01 103
Cash Flow from investing activities
Euipment purchased (15)
Equipment sold 13 (2)
Cash Flow from Financing activities
Purchase of common stock (8)
Redemption of bond (25)
investment (6) (39)
cash flow during the year 62
opening cash in hand 39
closing cash in hand 60