Question

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2017 2018 Assets $ 26 $45 Cash 59 Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment 50 (4) (5) 6 4 56 67 16 27 46 91 Land Buildings and equipment Less: Accumulated depreciation 219 262 (31) (62) $ 403 $ 469 Liabilities S 19 32 Accounts payable Salaries payable Interest payable Income tax payable Notes payable 6 5 13 15 45 140 AM 11/30/2019

Answer 1

		Statement of cash flows
						$	$
Cash flows from operating activities:
Net income							43
Adjustments for non cash effects:
Depreciation expense						17
Loss on sale of building						5
Amortization of discount on bonds					(15-8)	7
Changes in operating assets and liabilities:
Decrease in accounts receivable					(59-50)	9
Increase in accounts receivable					(6-4)	-2
Increase in inventory					(67-56)	-11
Increase in allowance for uncollectible accounts					(5-4)	1
Decrease in accounts payable					(32-19)	-13
Decrease in salaries payable					(9-6)	-3
Increase in interest payable					(8-5)	3
Decrease in income tax payable					(15-13)	-2	11
Net cash provided by operating activities							54
Cash flows from investing activities:
Sale of building						11
Equipment purchased						-21
Common stock of byrd corporation purchased						-11
Net cash used for investing activities							-21
Cash flows from financing activities:
Bonds issued						31
Cash dividend paid						-31
Shares repurchased						-14
Net cash used for financing activities							-14
Net increase in cash							19
Add: Cash balance,January 1							26
Cash balance,December 31							45
Non cash investing and financing activities:
Property acquired by issuing notes							45
Stock dividend issued				(1000*$10)			10
Notes for operating activities,
Increase in current assets results in cash outflow.Otherwise cash inflow
Increase in current liabilities results in cash inflow.Otherwise cash outflow
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