The Comparative Balance Sheets For 2021 And 2020

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
2021 2020
Assets
Cash $ 33 $ 20
Accounts receivable 48 50
Less: Allowance for uncollectible accounts (4 ) (3 )
Dividends receivable 3 2
Inventory 55 50
Long-term investment 15 10 The Comparative Balance Sheets For 2021 And 2020
Land 70 40
Buildings and equipment 225 250
Less: Accumulated depreciation (25 ) (50 )
$ 420 $ 369
Liabilities

 

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Accounts payable $ 13 $ 20
Salaries payable 2 5
Interest payable 4 2
Income tax payable 7 8
Notes payable 30 0
Bonds payable 95 70
Less: Discount on bonds (2 ) (3 )
Shareholders’ Equity
Common stock 210 200
Paid-in capital—excess of par 24 20
Retained earnings 45 47
Less: Treasury stock (8 ) 0
$ 420 $ 369
DUX COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Revenues
Sales revenue $ 200
Dividend revenue 3 $ 203
Expenses
Cost of goods sold 120
Salaries expense 25
Depreciation expense 5
Bad debt expense 1
Interest expense 8
Loss on sale of building 3
Income tax expense 16 178
Net income $ 25 The Comparative Balance Sheets For 2021 And 2020

Additional information from the accounting records:

A building that originally cost $40,000, 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, $30,000 note payable to the seller.
New equipment was purchased for $15,000 cash.
On January 1, 2021, 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. The Comparative Balance Sheets For 2021 And 2020
Cash dividends of $13,000 were paid to shareholders.
On November 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. (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 2021 And 2020

 

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