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 Decenber 31, 2018 and 2017 s in 000s) Assets Cash Accounts receivable 2018 2017 $ 33 20 (4)So eBook 48 Less: Allovance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment 55 50 10 10 250 225 250 Print (25) (50 $420 369 References Liabilities $ 13 20 Accounts payable Salaries payable Interest payable Ineome tax payable Notes payable Donda payable 70 95 (21 (3) Leess Discount on bonds Sharehoiders Equity Common stook Paid-in capital-excess of par Retained earning 210 200 20 24 4547 Lessr Treasury stock (at coat) 420 $369

Answer 1

Answer :

Dux Company
Statement of Cash flow (direct method) For the year ended December 31, 2018
	$ in 000's	$ in 000's
I. Cash flow from Operating activities
Cash Inflow
Cash received from customers	$ 202
Cash from Dividend	3	$ 205
Cash Outflows :
Cash paid to suppliers	132
Cash paid to employees	28
Cash paid for interest expense	6
Cash paid for income tax expense	17	(183)
Net cash from operating activities		$ 22
II. Cash flow from Investing Activities
Land purchased	(30)
New equipment purchased	(15)
Sale of asset	7
Long term investments	(5)
Net cash used by Investing activities		$ (43)
III. Cash Flow from financing activities
Repurchase of treasury stock	(8)
Dividends paid	(13)
Bonds payable	25
Notes payable	30
Net cash flow from financing activities		$ 34
Net increase in cash		$ 13
Add : opening cash balance		20
Cash balance as on Dec 31,2018		$ 33

Working Notes :

1). Cash received from customers = Sales + Opening Accounts receivable - Closing Accounts receivable

= 200 + 50 - 48 = $ 202

2). Cash paid to suppliers = Cost of goods sold + Opening Accounts payable - Closing accounts payable + Ending inventory - Opening inventory

= 120 +20 - 13 + 55 - 50 = $ 132

3). Cash paid to employees = Salary expense + opening salary payable - Closing salary payable

= 25 + 5 - 2= $ 28

4). Cash paid for interest expense = 8 + 2 - 4 = $ 6

5). Cash paid for income tax = 16 + 8 - 7 = $ 17

6). Land purchased = 70 - 40 = 30