Condensed financial data of Buffalo Industries follow.

Buffalo Industries

Comparative Balance Sheets

December 31

Assets 2017 2016

Cash $ 88,880 $ 53,240

Accounts receivable 96,580 41,800

Inventory 123,750 113,135

Prepaid expenses 31,240 28,600

Long-term investments 151,800 119,900

Plant assets 313,500 266,750

Accumulated depreciation (55,000 ) (57,200 )

Total $750,750 $566,225

Liabilities and Stockholders Equity

Accounts payable $ 112,200 $ 74,030

Accrued expenses payable 18,150 23,100

Bonds payable 121,000 160,600

Common stock 242,000 192,500

Retained earnings 257,400 115,995

Total $750,750 $566,225

Buffalo Industries Income Statement

Data For the Year Ended December 31, 2017

Sales revenue $427,306

Less:

Cost of goods sold $149,006

Operating expenses, excluding depreciation 13,651

Depreciation expense 51,150

Income tax expense 30,008

Interest expense 5,203

Loss on disposal of plant assets 8,250 257,268

Net income $ 170,038

Additional information:

1. New plant assets costing $110,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $63,250 and accumulated depreciation of $53,350 were sold for $1,650 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $28,633 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors.

Prepare a statement of cash flows for Buffalo Industries using the direct method. (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).)