Question

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 $ 49 46 Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation $ 24 53 (2) 2 3 65 21 85 273 (70) $ 469 18 60 290 (90 $ 415 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Poid-in capital-excess of par Retained earnings Less Treasury stock $ 35 3 7 8 25 115 $ 43 7 2 9 0 90 (5) 210 24 54 (8) 200 20 49

Answer 1

Workings: DUX COMPANY Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2021 ($ in 000s) Cash Flow from Operating Activities: Cash inflows: From customers $248 dividend Revenue $2 Cash outflows: To suppliers $153 To employees $37 To interest $4 To taxes $17 Net Cash Flow from Operating Activities Accounts receivable, beg. bal. Add: Allow. for doubt. debt., end. bal. Add: Sales revenue for the year Less: Accounts receivable, end. bal. Less: Allow. for doubt. debt., beg. bal. Cash Received from Customers $53 $3 $240 $46 -$2 $248 $250 Dividend revenue Dividend receivable, beg. Bal. Dividend receivable, end.bal. Cash received from dividend revenue $3 $2 -$3 $2 $211 $39 Cash Flow from Investing Activities: Cash realized from sale of building Cash paid to purchase long-term investment Cash paid to purchase new equipment Net cash flow from investing activities $2 $3 $19 [Given] [Given) [Given] Cost of Goods Sold Add: Ending Inventory Less: Beginning Inventory Goods Purchased Accounts payable, beg. Bal. Less: Accounts payable, end. Bal. Cash paid to suppliers for inventory $140 $65 $60 $145 $43 $35 $153 $20

$25 -$11 $8 Cash Flow from Financing Activities: Cash realized from sale of bonds payable Cash dividends declared & paid Cash paid to purchase treasury stock Net cash flow from financing activities Net increase in cash balance during the year Add: Cash balance, January 1 Cash Balance, December 31 Interest Expense Interest payable, beg. Bal. Interest payables, end.bal. Cash paid for interest $9 $2 $7 $4 $6 $25 $24 $49 Income tax Expense Income taxes payable, beg. Bal. Income taxes payable, end. Bal. Cash paid for income taxes $16 $9 $8 $17 Noncash investing and financing activities: New property acquired by issuing note payable Stock dividends declared (1,000 shares x $10] $25 $10 Salaries Expense Salaries payables, beg. bal. Salaries payables, end.bal. Salaries paid to employees $33 $7 $3 $37