Statement Of Cash Flows

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Statement Of Cash Flows

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 Statement of cash flows; T-account method(Direct method)

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.

 

DUX COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)
  2013 2012
  Assets            
  Cash $  52   $  25  
  Accounts receivable   38     52  
  Dividends receivable   4     3  
  Inventory   75     70  
  Long-term investment   22     20  
  Land   85     65  
  Buildings and equipment   180     200  
       Less: Accumulated depreciation   (18 )   (40 )
 
  $ 438   $ 395  
 
  Liabilities            
  Accounts payable $  11   $ 13  
  Salaries payable   4     8  
  Interest payable   6     3  
  Income tax payable   9     10  
  Notes payable   20     0  
  Bonds payable   120     95  
       Less: Discount on bonds   (5 )   (6 )
  Shareholders’ Equity            
  Common stock   210     200  
  Paid-in capital—excess of par   24     20  
  Retained earnings   48     52  
       Less: Treasury stock   (9 )   0  
 
  $ 438   $ 395  
 

 

DUX COMPANY
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
  Revenues    
     Sales revenue $ 250        
     Dividend revenue   4   $ 254  
 
     
  Expenses            
     Cost of goods sold $ 145        
     Salaries expense   35        
     Depreciation expense   8        
     Interest expense   10        
     Loss on sale of building   4        
     Income tax expense $ 29     231  
 
  Net income       $ 23  
       

 

Additional information from the accounting records:

 

a. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $6,000.
b. The common stock of Byrd Corporation was purchased for $2,000 as a long-term investment.
c. Property was acquired by issuing a 14%, seven-year, $20,000 note payable to the seller.
d. New equipment was purchased for $20,000 cash.
e. On January 1, 2013, bonds were sold at their $25,000 face value.
f. 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.
g. Cash dividends of $13,000 were paid to shareholders.
h. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $9,000.

 

Required:
Prepare the statement of cash flows for Dux Company using direct the method. (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.)