The following financial information is available for Buffalo Incorporated for the 20X3 fiscal year:

Additional information:
1. Marketable securities were sold at their carrying value. The marketable securities are not cash equivalents.
2. A partially depreciated building was sold for an amount equal to its net book value.
3. Cash of $ 40,000 was received on the sale of a machine.
4. Preferred shares were issued for cash on 1 March 20X3. Dividends of $ 50,000 were paid on the noncumulative preferred shares.
5. On 1 September 20X3, 25,000 common shares were purchased and retired for $ 55,000, their original issuance price. On 1 November 20X3, 65,000 common shares were issued in exchange for machinery and valued at $ 120,000.
6. Because of its loss, the company received a refund of taxes paid in prior years of $ 54,000.

1. Prepare the SCF, in good form. Use the indirect method for cash flows from operations. Omit the separate disclosure of cash flows for interest, investment income, and income tax. Include a list of non- cash transactions that would be presented in the disclosure notes.
2. Repeat the operating activities section of the SCF, using the direct method for cash flows fromoperations.

  • CreatedFebruary 17, 2015
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