Problem 23-3 Partially correct answer. Your answer is partially correct. Try again. Buffalo Company has not yet prepared a formal statement of cash flows for the 2017 fiscal year. Comparative balance sheets as of December 31, 2016 and 2017, and a statement of income and retained earnings for the year ended December 31, 2017, are presented as follows. BUFFALO COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2017 ($000 OMITTED) Sales revenue $3,820 Expenses Cost of goods sold $1,200 Salaries and benefits 740 Heat, light, and power 80 Depreciation 90 Property taxes 20 Patent amortization 20 Miscellaneous expenses 10 Interest 30 2,190 Income before income taxes 1,630 Income taxes 815 Net income 815 Retained earningsJan. 1, 2017 320 1,135 Stock dividend declared and issued 615 Retained earningsDec. 31, 2017 $520 BUFFALO COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED) Assets 2017 2016 Current assets Cash $333 $100 U.S. Treasury notes (available-for-sale) 10 50 Accounts receivable 790 520 Inventory 730 560 Total current assets 1,863 1,230 Long-term assets Land 150 70 Buildings and equipment 920 600 Accumulated depreciationbuildings and equipment (200 ) (110 ) Patents (less amortization) 110 130 Total long-term assets 980 690 Total assets $2,843 $1,920 Liabilities and Stockholders Equity Current liabilities Accounts payable $452 $350 Income taxes payable 36 30 Notes payable 320 320 Total current liabilities 808 700 Long-term notes payabledue 2019 190 190 Total liabilities 998 890 Stockholders equity Common stock 1,325 710 Retained earnings 520 320 Total stockholders equity 1,845 1,030 Total liabilities and stockholders equity $2,843 $1,920 Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)