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Buffalo Industries Comparative Balance Sheets December 31 2016 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 2017 125,650 71,800 50,260 71,800 215,400 280,020 71,800 100,520 (114,880) (86,160) $398,490 387,720 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $68,210 53,850 28,720 61,030 118,470 50,260 136,420 $398,490 $387,720 25,130 64,620 179,500 Buffalo Industries Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross proft Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense 868,780 628,250 240,530 $64,620 21,540 86,160 154,370 10,770 143,600 28,720 Net income 114,880 Additional data: 1. 2. 3. Depreciation expense was $ 62,825 Dividends declared and paid were $71,800 During the year equipment was sold for $30,515 cash. This equipment cost $ 64,620 originally and had accumulated depreciation of $ 34,105 at the time of sale Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and purchases are on account. Prepare a statement of cash flows for Buffalo Industries using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign eg.-15,000 or in parenthesis eg. (15,000).) Buffalo Industries Statement of Cash Flows

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