Business Finance
Statement of Cash Flow

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Statement of cash flows; T-account method (Direct method) 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. DUX COMPANY Comparative Balance Sheets December 31, 2013 and 2012 ($ in 000s) 2013 Assets Cash Accounts receivable Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholder s' Equity Common stock Paid-in capital— excess of par Retained earnings $ 52 2012 $ 25 38 52 4 3 75 70 22 20 85 65 180 200 (18) (40) $ 438 $ 395 $ 11 $ 13 4 8 6 3 9 10 20 0 120 95 (5) (6) 210 200 24 20 48 52 Less: Treasury stock (9) $ 438 0 $ 395 $ 254 DUX COMPANY Income Statement For the Year Ended December 31, 2013 ($ in 000s) Revenues Sales revenue Dividend revenue Expenses Cost of goods sold Salaries expense Depreciatio n expense Interest expense Loss on sale of building Income tax expense Net income $ 250 4 $ 145 35 8 10 4 $ 29 231 $ 23 Additional information from the accounting records: a. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $6,000. b. The common stock of Byrd Corporation was purchased for $2,000 as a long-term investment. c. Property was acquired by issuing a 14%, seven-year, $20,000 note payable to the seller. d. New equipment was purchased for $20,000 cash. e. On January 1, 2013, bonds were sold at their $25,000 face value. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value f. 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 $9,000. Required: Prepare the statement of cash flows for Dux Company using direct the method. (Hint: Use the T-account method to assist in your analysis.) (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) ...
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