Buffalo Ski Haus had the following statements prepared as of December 31, 2020. BUFFALO SKI HAUS COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $2,500 $4,000 Accounts receivable 102,000 98,000 Short-term debt investments (available-for-sale) 98,000 121,000 Inventories 92,000 48,000 Prepaid insurance 4,000 6,100 Ski equipment 88,000 44,000 Accumulated depreciation—equipment (23,500) (18,000) Trademarks 78,000 85,000 Total assets $441,000 $388,100 Accounts payable $93,500 $72,000 Income taxes payable 21,600 15,000 Wages payable 4,000 9,000 Short-term loans payable 23,500 0 Long-term loans payable 76,200 124,000 Common stock, $1 par 100,000 100,000 Additional paid-in capital 20,000 20,000 Retained earnings 102,200 48,100 Total liabilities & stockholders’ equity $441,000 $388,100 BUFFALO SKI HAUS INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales $538,700 Cost of goods sold 306,000 Gross profit 232,700 Operating expenses 93,000 Operating income 139,700 Interest expense $20,400 Loss on sale of equipment 4,000 24,400 Income before tax 115,300 Income tax expense 41,200 Net income $74,100 Additional information: 

1. Dividends in the amount of $20,000 were declared and paid during 2020. 

2. Depreciation expense and amortization expense are included in operating expenses. 

3. Equipment that had a cost of $24,800 and was 20% depreciated was sold during 2020. 

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) 

Answer rating: 100% (QA)

Statement of cash flows is one of the financial statements of a company and is prepared with a view ... View the full answer