the comparative balance sheets for 2016 and 2015 and the sta

The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Company. Additional information from Dux\'s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 (S in 000s) 2016 2015 s 20 47 s 33 Accounts receivable Dividends receivable Curtent asset Inventory Long-term investment S0 10 40 250 (50) $369 15 70 Buildings and equipment Less: Accumulated depreciation (25) $420 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable s 13 s 20 30 Amb Less:-Eiscount-ombonds Ac Sization axpen2) Shareholders\' Equity Common stock Paid-in capital -excess of par Retained earnings 210 24 45 200 20 47 Less: Treasury stock $420 $369 DUX COMPANY Income Statement For the Year Ended December 31, 2016 (S in 000s) Revenues Sales revenue Dividend revenue $200 $203 Expenses Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of building Income tax expense 120 25 17 Net income dditional information from the accounting records A building that originally cost $40,000, and which was three fouthsd

Solution

DUX COMPANY Statement of Cash Flows For year ended December 31, 2016 ($ in 000s) Cash flows from operating activities: Net income $25.00 Adjustments for noncash effects: Depreciation expense $5.00 Loss on sale of building $3.00 Decrease in A/R ( $44 - $47) $3.00 Increase in Interest payable (4 -2) $2.00 Discount Amortisation ($2 - $3) $1.00 Increase In Dividend Receivable ($3 - $2) -$1.00 Increase in Inventory ($55 - $50) -$5.00 Decrease in A/P ($13 - $20) -$7.00 Decrease in Salaries Payable ($2 - $5) -$3.00 Decrease in Tax payable ($7 - $8) -$1.00 Net cash flows from operating activities $22.00 Cash flows from investing activities: Sale of building $7.00 Purchase of long-term investment -$5.00 Purchase of equipment -$15.00 Net cash flows from investing activities -$13.00 Cash flows from financing activities: Sale of bonds payable $25.00 Payment of cash dividends -$13 Purchase of treasury stock -$8 Net cash flows from financing activities $4.00 Net increase in cash $13.00 Add January 1 Balance $20.00 Cash balance, December 31 $33.00 Noncash investing and financing activities Acquired $30,000 of land by issuing a 13%, 7-year note. $30.00