The comparative balance sheets for 2016 and 2015 and the statement of income for
ID: 2566933 • 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 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.)
please show the t-balances
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 cash flows (Indirect method)
Building and Equipment A/c
Cash flow from operating activities: Net income $25 Add depreciation expense 5 Add loss on sale of building 3 Add discount on bonds written off 1 Add decrease in accounts receivable 3 Less increase in dividend receivable -1 Less increase in inventory -5 Less decrease in accounts payable -7 Less decrease in salaries payable -3 Add increase in interest payable 2 Less decrease in income tax payable -1 Net Cash flow from operating activities $22 Cash flow from investing activities: Sale of building 7 Cash purchase of equipment -15 Purchase of long-term investment -5 Net Cash flow from investing activities: -$13 Cash flow from financing activities: Increase in bonds payable 25 Cash dividends -13 Purchase of treasury stock -8 Net Cash flow from financing activities $4 Net increase in cash $13 Beginning cash balance 20 Ending cash balance $33