The comparative balance sheets for 2016 and 2015 and the statement of income for
ID: 2529330 • 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 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $12 per share at that time.
On November 46,000 shares of common stock were repurchased as treasury stock at a cost of $23,000.
Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).))
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
Statement of Cashflows for Dux company for the year ended 2016
Cashflows from operating activities $000 $000
Adjustments:
Depreciation 35
Loss on Disposal 4
_______
Operating profit before working capital changes 39
Increase in Inventory -20
Decrease in Receivables 18
Decrease in Payables -22
_________
Cash generated from operations 15
Interest paid -23
Tax paid -32
__________
Net Cash from operating activities -40
Cashflows from investing activties
Purchase of equipment -30
Purchase of long term investment -20
Proceeds from sale of property 21
__________
Net activities from investing activities -29
Cashflows from financing activities
Proceeds from issue of bonds 40
Proceeds from issue of ordinary shares 12
Dividends paid -55
Treasury Stock -23
_________
Net Cash from financing activities -26
_________
Net cash increase in Cash and equivalents 28
Cash and equivalents at the beggining 35
_______
Cash and equivalents at the end of the period 63