Buffalo Corporation had the following 2020 income statement. Revenues $104,000 Expenses 62,000 $42,000 In 2020, Buffalo had the following activity in selected accounts. Accounts Receivable 1/1/20 22,000 Revenues 104,000 12/31/20 33,000 Write-offs 1,000 Collections 92,000 Allowance for Doubtful Accounts Write-offs 1,000 1/1/20 1,000 Bad debt expense 1,900 12/31/20 1,900 (a) Prepare Buffalo’s cash flows from operating activities section of the statement of cash flows using the direct method. Buffalo Corporation Statement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Buffalo’s cash flows from operating activities section of the 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).) Buffalo Corporation Statement of Cash Flows-Indirect Method (Partial) $ $
Buffalo Corporation had the following 2020 income statement. Revenues $104,000 Expenses 62,000 $42,000 In 2020, Buffalo had the following activity in selected accounts. Accounts Receivable 1/1/20 22,000 Revenues 104,000 12/31/20 33,000 Write-offs 1,000 Collections 92,000 Allowance for Doubtful Accounts Write-offs 1,000 1/1/20 1,000 Bad debt expense 1,900 12/31/20 1,900 (a) Prepare Buffalo’s cash flows from operating activities section of the statement of cash flows using the direct method. Buffalo Corporation Statement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Buffalo’s cash flows from operating activities section of the 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).) Buffalo Corporation Statement of Cash Flows-Indirect Method (Partial) $ $
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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Question
9.
Buffalo Corporation had the following 2020 income statement.
In 2020, Buffalo had the following activity in selected accounts.
(a) Prepare Buffalo’scash flows from operating activities section of the statement of cash flows using the direct method.
(b) Prepare Buffalo’s cash flows from operating activities section of the 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).)
Revenues |
$104,000
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|
Expenses |
62,000
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|
$42,000
|
In 2020, Buffalo had the following activity in selected accounts.
Accounts Receivable
|
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|
|
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Allowance for Doubtful Accounts
|
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|
|
(a) Prepare Buffalo’s
Buffalo Corporation
Statement of Cash Flows-Direct Method (Partial) |
||
|
||
|
$
|
|
|
|
|
|
$
|
(b) Prepare Buffalo’s cash flows from operating activities section of the 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).)
Buffalo Corporation
Statement of Cash Flows-Indirect Method (Partial) |
||
|
||
|
$
|
|
|
|
|
|
$
|
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