The comparative balance sheets for 2018 and 2017 and the statement of income for
ID: 2520524 • Letter: T
Question
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
Additional information from the accounting records:
A building that originally cost $52,000, and which was three-fourths depreciated, was sold for $6,000.
The common stock of Byrd Corporation was purchased for $2,000 as a long-term investment.
Property was acquired by issuing a 11%, seven-year, $25,000 note payable to the seller.
New equipment was purchased for $23,000 cash.
On January 1, 2018, bonds were sold at their $25,000 face value.
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.
Cash dividends of $12,000 were paid to shareholders.
On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $12,000.
Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis. (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
Format: Statement of Cash Flows that is NEEDED:
Cash flows from operating activities:
Cash inflows:
From customers
From dividends received
Cash outflows:
To suppliers of goods
To employees
For interest
For income taxes
Net cash flows from operating activities:
Cash flows from investing activities:
Sale of building
Purchase of L-T investment
Purchase of equipment
Net cash flows from investing activities:
Cash flows from fin.activities:
Sale of bonds payable
Purchase of Treasury Stock
Payment of cash dividends
Net cash flows from financing activities
Net increase in cash
Cash balance Jan 1
Cash Balance Dec .31
Noncash invest. and financing activities Thank you. That`s the format I need, was asked by one of your experts to provide it
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s) 2018 2017 Assets Cash $ 36 $ 28 Accounts receivable 47 58 Less: Allowance for uncollectible accounts (4 ) (3 ) Dividends receivable 7 6 Inventory 40 35 Long-term investment 28 26 Land 105 80 Buildings and equipment 201 230 Less: Accumulated depreciation (35 ) (70 ) $ 425 $ 390 Liabilities Accounts payable $ 26 $ 39 Salaries payable 2 4 Interest payable 5 2 Income tax payable 6 8 Notes payable 25 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 56 61 Less: Treasury stock (at cost) (12 ) 0 $ 425 $ 390
Explanation / Answer
Cash Flows from operating activities:- cash Inflows From customer 291000 $ From Dividend recieved 6000 $ Cash Outflows To Supplier of goods 182000 $ To Employees 43000 For Interest 5000 For Income taxes 41000 Net cash Flows from Operating activities 26000 Cash Flows from Investing actiities sale of Building 6000 Purchase of long term investments 2000 Purchase of equipment 23000 Net cash flows from investing activities -19000 Cash Flows from Financing Activities sale of Bonds Payable 25000 Purchase of treasury stock 12000 payment of cash dividnds 12000 Net cash flows from financing activities 1000 Net cash Increased 8000 Cash balance at jan 1 28000 cash blance at Dec 31 36000