i need the answer and explanation

2

>Problem

2

1

–

4

(Algo)

Statement

of

cash

flows;

direct

method

[LO21-

3

,

21-8]

The

comparative

balance

sheets

for

2

0 24

and

20

23

and

the statement of income for 2024 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.

, 2024 and 2023

20242023AssetsCash

Accounts receivable

1

Less: Allowance for uncollectible accounts

)

Dividends receivable43Inventory

0

5

Long-term investment

Land95

Buildings and equipment

2

Less: Accumulated depreciation

)

)

0

LiabilitiesAccounts payable$ 46

Salaries payable69Interest payable72Income tax payable56Notes payable100Bonds payable8050Less: Discount on bonds

Shareholders’ EquityCommon stock

200

Paid-in capital—excess of par2420Retained earnings

Less: Treasury stock

0

$ 536

	DUX COMPANY
Comparative Balance Sheets
December	31
	($ in thousands)
$ 121	$ 40
43		7
(	5	(4)
		10				9
54		50
85
1		6		200
(	38	(	80
	$ 536		$ 46
$ 82
(5)	(6)
210
163	97
(10)
$ 460

DUX COMPANY

($ in thousands)

RevenuesSales revenue

Dividend revenue4

ExpensesCost of goods sold

Salaries expense38Depreciation expense9Bad debt expense1Interest expense10Loss on sale of building2Income tax expense31

Net income

Income Statement

For the Year Ended December 31, 2024

$ 400

$ 404

220

311

$ 93

Additional information from the accounting records:

1. A building that originally cost $68,000, and which was three-fourths depreciated, was sold for $15,000.
2. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment.
3. Property was acquired by issuing a 15%, seven-year, $10,000 note payable to the seller.
4. New equipment was purchased for $30,000 cash.
5. On January 1, 2024, bonds were sold at their $30,000 face value.
6. 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.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $10,000.

Required:

Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

Note: Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.