P21-4 The
comparative balance sheets for 2013 and 2012 and the statement of income for
2013 are given below for Dux Company.
P21-4 Statement
of cash flows; direct method
P21-4 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.
Additional
information from the accounting records:
a. A building that originally cost
$40,000, and which was three-fourths depreciated, was sold for $7,000.
b. The common stock of Byrd
Corporation was purchased for $5,000 as a long-term investment.
c. Property was acquired by issuing
a 13%, seven-year, $30,000 note payable to the seller.
d. New equipment was purchased for
$15,000 cash.
e. On January 1, 2011, $25,000 of
bonds were sold at 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 $8,000.
Required:
Prepare the statement of cash flows
of Dux Company for the year ended December 31, 2013. Present cash flows from
operating activities by the direct method. (You may omit the schedule to
reconcile net income to cash flows from operating activities.)
DUX COMPANY
Balance Sheet and Income
Statement data are given in the solution.
Additional information:
|
|
Building cost
|
$40,000
|
Building selling price
|
$7,000
|
Building depreciated
|
¾
|
Common stock purchased as long term investment
|
5,000
|
Note payable for property
|
30,000
|
Note payable interest
|
13%
|
Equipment purchase
|
15,000
|
Bond sale, 1/1/13
|
25,000
|
Stock dividend issue(1,000 shares)
|
5%
|
Common stock par value
|
10
|
Market price per share
|
14
|
Cash dividends paid
|
13,000
|
Number of common stock shares repurchased
|
500
|
Common stock repurchase cost
|
8,000
|
File name: p21-4-Dux-company.xls File type: application/vnd.ms-excel Price: $7
