The comparative balance sheets for 2016 and 2015 and thestatement of income for 2016 are given below for Wright Company.Additional information from Wright's accounting records is providedalso.

WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2016 and 2015
($ in 000s)

2016 2015

Assets

Cash $ 130 $ 120

Accountsreceivable 163 165

Short-terminvestment 62 24

Inventory 162 160

Land 122 150

Buildings andequipment 770 580

Less: Accumulated depreciation (223) (165)

$ 1,186 $ 1,034

Liabilities

Accountspayable $ 50 $ 53

Salariespayable 4 6

Interestpayable 8 5

Income taxpayable 9 15

Notes payable 0 38

Bonds payable 356 280

Shareholders' Equity

Common stock 445 380

Paid-incapitalâexcess of par 217 190

Retainedearnings 97 67

$ 1,186 $ 1,034

WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2016
($ in 000s)

Revenues:

Sales revenue $ 660

Expenses:

Cost of goodssold $ 310

Salariesexpense 94

Depreciationexpense 58

Interestexpense 10

Loss on sale ofland 3

Income taxexpense 95 570

Netincome $ 90

Additionalinformation from the accounting records:

a. Land that originally cost$28,000 was sold for $25,000.

b.
The common stock of Microsoft Corporation was purchased for$38,000 as a short-term investment not classified as a cashequivalent.

c. New equipment was purchased for$190,000 cash.

d. A $38,000 note was paid atmaturity on January 1.

e. On January 1, 2016, bonds weresold at their $76,000 face value.

f. Common stock ($65,000 par) wassold for $92,000.

g. Net income was $90,000 and cashdividends of $60,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for theyear ended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Amounts to be deductedshould be indicated with a minus sign. Enter your answers inthousands (i.e., 5,000 should be entered as 5).)

Question

The comparative balance sheets for 2016 and 2015 and thestatement of income for 2016 are given below for Wright Company.Additional information from Wright's accounting records is providedalso.

WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
	2016		2015
Assets
Cash	$	130	$	120
Accountsreceivable		163		165
Short-terminvestment		62		24
Inventory		162		160
Land		122		150
Buildings andequipment		770		580
Less: Accumulated depreciation		(223)		(165)

	$	1,186	$	1,034

Liabilities
Accountspayable	$	50	$	53
Salariespayable		4		6
Interestpayable		8		5
Income taxpayable		9		15
Notes payable		0		38
Bonds payable		356		280
Shareholders' Equity
Common stock		445		380
Paid-incapitalâexcess of par		217		190
Retainedearnings		97		67

	$	1,186	$	1,034

WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues:
Sales revenue			$	660
Expenses:
Cost of goodssold	$	310
Salariesexpense		94
Depreciationexpense		58
Interestexpense		10
Loss on sale ofland		3
Income taxexpense		95		570

Netincome			$	90

Additionalinformation from the accounting records:
a.	Land that originally cost$28,000 was sold for $25,000.
b.	The common stock of Microsoft Corporation was purchased for$38,000 as a short-term investment not classified as a cashequivalent.
c.	New equipment was purchased for$190,000 cash.
d.	A $38,000 note was paid atmaturity on January 1.
e.	On January 1, 2016, bonds weresold at their $76,000 face value.
f.	Common stock ($65,000 par) wassold for $92,000.
g.	Net income was $90,000 and cashdividends of $60,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for theyear ended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Amounts to be deductedshould be indicated with a minus sign. Enter your answers inthousands (i.e., 5,000 should be entered as 5).)

DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues
Sales revenue	$	230
Dividend revenue		6	$	236

Expenses
Cost of goods sold		135
Salaries expense		31
Depreciation expense		6
Interest expense		8
Loss on sale of building		5
Income tax expense		16		201

Netincome			$	35

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016		2015
Assets
Cash	$	154	$	100
Accountsreceivable		209		232
Investment revenuereceivable		25		23
Inventory		226		219
Prepaidinsurance		23		32
Long-terminvestment		213		144
Land		234		169
Buildings andequipment		431		438
Less: Accumulateddepreciation		(117)		(158)
Patent		53		56

	$	1,451	$	1,255

Liabilities
Accountspayable	$	69	$	103
Salariespayable		25		37
Bond interestpayable		27		23
Income taxpayable		31		38
Deferred income taxliability		49		27
Notes payable		32		0
Lease liability		101		0
Bonds payable		234		313
Less: Discount onbonds		(41)		(46)
Shareholdersâ Equity
Common stock		465		429
Paid-incapitalâexcess of par		119		104
Preferred stock		94		0
Retainedearnings		274		227
Less: Treasury stock		(28)		0

	$	1,451	$	1,255

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2016 ($ in millions)
Revenues
Sales revenue	$	589
Investmentrevenue		30
Gain on sale oftreasury bills		2	$	621

Expenses andloss:
Cost of goodssold		199
Salariesexpense		92
Depreciationexpense		13
Patent amortizationexpense		2
Insuranceexpense		26
Bond interestexpense		47
Loss on machinedamage		34
Income taxexpense		55		468

Netincome			$	153

Additionalinformation from the accounting records:
a.	Investment revenue includes Arduous Companyâs $25 million shareof the net income of Demur Company, an equity method investee.
b.	Treasury bills were sold during 2016 at a gain of $2 million.Arduous Company classifies its investments in Treasury bills ascash equivalents.
c.	A machine originally costing $108 million that was one-halfdepreciated was rendered unusable by a flood. Most major componentsof the machine were unharmed and were sold for $20 million.
d.	Temporary differences between pretax accounting income andtaxable income caused the deferred income tax liability to increaseby $22 million.
e.	The preferred stock of Tory Corporation was purchased for $44million as a long-term investment.
f.	Land costing $65 million was acquired by issuing $33 millioncash and a 10%, four-year, $32 million note payable to theseller.
g.	The right to use a building was acquired with a 15-year leaseagreement; present value of lease payments, $101 million.
h.	$79 million of bonds wereretired at maturity.
i.	In February, Arduous issued a 4% stock dividend (6 millionshares). The market price of the $6 par value common stock was$8.50 per share at that time. Also the company paid a cashdividend.
j.	In April, 1 million shares ofcommon stock were repurchased as treasury stock at a cost of $28.00million.

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016		2015
Assets
Cash	$	154	$	100
Accountsreceivable		209		232
Investment revenuereceivable		25		23
Inventory		226		219
Prepaidinsurance		23		32
Long-terminvestment		213		144
Land		234		169
Buildings andequipment		431		438
Less: Accumulateddepreciation		(117)		(158)
Patent		53		56

	$	1,451	$	1,255

Liabilities
Accountspayable	$	69	$	103
Salariespayable		25		37
Bond interestpayable		27		23
Income taxpayable		31		38
Deferred income taxliability		49		27
Notes payable		32		0
Lease liability		101		0
Bonds payable		234		313
Less: Discount onbonds		(41)		(46)
Shareholdersâ Equity
Common stock		465		429
Paid-incapitalâexcess of par		119		104
Preferred stock		94		0
Retainedearnings		274		227
Less: Treasury stock		(28)		0

	$	1,451	$	1,255

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DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
		2016		2015
Assets
Cash	$	59	$	23
Accountsreceivable		34		50
Dividendsreceivable		6		5
Inventory		55		50
Long-terminvestment		19		16
Land		75		55
Buildings andequipment		266		280
Less: Accumulateddepreciation		(62)		(80)

	$	452	$	399

Liabilities
Accountspayable	$	31	$	33
Salariespayable		1		6
Interestpayable		8		5
Income taxpayable		7		8
Notes payable		20		0
Bonds payable		110		85
Less: Discount on bonds		(3)		(4)
Shareholders' Equity
Common stock		210		200
Paid-incapitalâexcess of par		24		20
Retainedearnings		51		46
Less: Treasury stock (atcost)		(7)		0

	$	452	$	399

a.	A building that originally cost$32,000, and which was three-fourths depreciated, was sold for$3,000.
b.	The common stock of ByrdCorporation was purchased for $3,000 as a long-terminvestment.
c.	Property was acquired by issuinga 12%, seven-year, $20,000 note payable to the seller.
d.	New equipment was purchased for$18,000 cash.
e.	On January 1, 2016, bonds weresold at their $25,000 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 pershare at that time.
g.	Cash dividends of $16,000 werepaid to shareholders.
h.	On November 12, 500 shares of common stock were repurchased astreasury stock at a cost of $7,000.

Required:
Prepare the statement of cash flows of Arduous Company for theyear ended December 31, 2016. Present cash flows from operatingactivities by the direct method. (Do not round yourintermediate calculations. Enter your answers in millions (i.e.,10,000,000 should be entered as 10.). Amounts to be deducted shouldbe indicated with a minus sign.)