The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 129.0 $ 36.0 Accounts receivable 64.0 66.0 Less: Allowance for uncollectible accounts (5.0) (4.0) Dividends receivable 19.0 18.0 Inventory 71.0 66.0 Long-term investment 31.0 26.0 Land 86.0 40.0 Buildings and equipment 161.0 266.0 Less: Accumulated depreciation (6.0) (130.0) $ 550.0 $ 384.0 Liabilities Accounts payable $ 29.0 $ 36.0 Salaries payable 18.0 21.0 Interest payable 20.0 18.0 Income tax payable 23.0 24.0 Notes payable 46.0 0 Bonds payable 91.0 50.0 Less: Discount on bonds (2.0) (3.0) Shareholders' Equity Common stock 210.0 200.0 Paid-in capital—excess of par 24.0 20.0 Retained earnings 99.0 18.0 Less: Treasury stock (8.0) 0 $ 550.0 $ 384.0 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 440.0 Dividend revenue 19.0 $ 459.0 Expenses Cost of goods sold 152.0 Salaries expense 57.0 Depreciation expense 2.0 Bad debt expense 1.0 Interest expense 40.0 Loss on sale of building 35.0 Income tax expense 48.0 335.0 Net income $ 124.0 Additional information from the accounting records: A building that originally cost $168,000, and which was three-fourths depreciated, was sold for $7,000. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. Property was acquired by issuing a 13%, seven-year, $46,000 note payable to the seller. New equipment was purchased for $63,000 cash. On January 1, 2024, bonds were sold at their $41,000 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 $29,000 were paid to shareholders. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 129.0 $ 36.0 Accounts receivable 64.0 66.0 Less: Allowance for uncollectible accounts (5.0) (4.0) Dividends receivable 19.0 18.0 Inventory 71.0 66.0 Long-term investment 31.0 26.0 Land 86.0 40.0 Buildings and equipment 161.0 266.0 Less: Accumulated depreciation (6.0) (130.0) $ 550.0 $ 384.0 Liabilities Accounts payable $ 29.0 $ 36.0 Salaries payable 18.0 21.0 Interest payable 20.0 18.0 Income tax payable 23.0 24.0 Notes payable 46.0 0 Bonds payable 91.0 50.0 Less: Discount on bonds (2.0) (3.0) Shareholders' Equity Common stock 210.0 200.0 Paid-in capital—excess of par 24.0 20.0 Retained earnings 99.0 18.0 Less: Treasury stock (8.0) 0 $ 550.0 $ 384.0 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 440.0 Dividend revenue 19.0 $ 459.0 Expenses Cost of goods sold 152.0 Salaries expense 57.0 Depreciation expense 2.0 Bad debt expense 1.0 Interest expense 40.0 Loss on sale of building 35.0 Income tax expense 48.0 335.0 Net income $ 124.0 Additional information from the accounting records: A building that originally cost $168,000, and which was three-fourths depreciated, was sold for $7,000. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. Property was acquired by issuing a 13%, seven-year, $46,000 note payable to the seller. New equipment was purchased for $63,000 cash. On January 1, 2024, bonds were sold at their $41,000 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 $29,000 were paid to shareholders. On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12A: The Statement Of Cash Flows
Section: Chapter Questions
Problem 4P
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Question
The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
DUX COMPANY | ||
Comparative Balance Sheets | ||
December 31, 2024 and 2023 | ||
($ in thousands) | ||
2024 | 2023 | |
---|---|---|
Assets | ||
Cash | $ 129.0 | $ 36.0 |
Accounts receivable | 64.0 | 66.0 |
Less: Allowance for uncollectible accounts | (5.0) | (4.0) |
Dividends receivable | 19.0 | 18.0 |
Inventory | 71.0 | 66.0 |
Long-term investment | 31.0 | 26.0 |
Land | 86.0 | 40.0 |
Buildings and equipment | 161.0 | 266.0 |
Less: |
(6.0) | (130.0) |
$ 550.0 | $ 384.0 | |
Liabilities | ||
Accounts payable | $ 29.0 | $ 36.0 |
Salaries payable | 18.0 | 21.0 |
Interest payable | 20.0 | 18.0 |
Income tax payable | 23.0 | 24.0 |
Notes payable | 46.0 | 0 |
Bonds payable | 91.0 | 50.0 |
Less: Discount on bonds | (2.0) | (3.0) |
Shareholders' Equity | ||
Common stock | 210.0 | 200.0 |
Paid-in capital—excess of par | 24.0 | 20.0 |
99.0 | 18.0 | |
Less: |
(8.0) | 0 |
$ 550.0 | $ 384.0 |
DUX COMPANY | ||
Income Statement | ||
For the Year Ended December 31, 2024 | ||
($ in thousands) | ||
Revenues | ||
---|---|---|
Sales revenue | $ 440.0 | |
Dividend revenue | 19.0 | $ 459.0 |
Expenses | ||
Cost of goods sold | 152.0 | |
Salaries expense | 57.0 | |
Depreciation expense | 2.0 | |
1.0 | ||
Interest expense | 40.0 | |
Loss on sale of building | 35.0 | |
Income tax expense | 48.0 | 335.0 |
Net income | $ 124.0 |
Additional information from the accounting records:
- A building that originally cost $168,000, and which was three-fourths depreciated, was sold for $7,000.
- The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
- Property was acquired by issuing a 13%, seven-year, $46,000 note payable to the seller.
- New equipment was purchased for $63,000 cash.
- On January 1, 2024, bonds were sold at their $41,000 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 $29,000 were paid to shareholders.
- On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000.
Required:
Prepare the statement of
Note: 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).
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