Presented below is a condensed version of the comparative balance sheets for Buf

Question

Presented below is a condensed version of the comparative balance sheets for Buffalo Corporation for the last two years at December 31. 2017 2016 238,950 105,300 243,000 249,750 99,900 324,000 Cash Accounts receivable Investments Equipment Accumulated Depreciation-Equipment Current liabilities Comman stock Retained earnings 70,200 402,300 (143,100) (120,150) 180,900 216,000 414,450 203,850 216,000 238,950 Additional information: Investments were sold at a loss of $13,500; no equipment was sold; cash dividends paid were $40,500; and net income was $216,000 Prepare a statement of cash flows for 2017 for Buftalo Corporation (Show amounts that decrease cash Now with either a . sign .g.-15,000 or in parenthesis eg. (15,000).)

Explanation / Answer

Buffalo Corporation

Statment of Cash Flows

Workings

Depreciation Expenses = 143100 - 120150 = 22950

Value of investment Sold = 99900 - 13500 - 70200 = 16200

Purchase of equipments = 402300 - 324000 = 78300

Amount ($) Amount ($) Cash Flow from operating Activities Operating Income 216000 Depreciation Expenses 22950 Decrease in Account Receivable 6750 Decrease in Current Liabilities - 22950 Loss on sale of investment 13500 Net Cash Flow from Operating Activities 236250 Cash Flow from Investing Activities Sale of Investments 16200 Purchase of Equipments - 78300 Net Cash Flow from Investing Activities - 62100 Cash Flow from financing Activities Payment of Dividends - 40500 Net Cash flow from financing Activities - 40500 Net Change in Cash 133650 Begining Cash Balance in 2017 105300 Ending Cash Balance for 2017 238950

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