Acc421 Intermediate Accounting: P21-4 Dux Company (Statement of cash flows - direct method)

Acc421 Intermediate Accounting P21–4 Statement of cash flows; direct method The comparative balance sheets for 2011 and 2010 and the statement of income for 2011 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, 2011. 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.)
Powered by