prepare a statement of cash flows using the direct method

mber 31, 2020. Short-term loans payable 8,10060,20010,10069,400 Common stock, $10 par 100,000100,000 Contributed capital, common stock 30,00030,000 Retained earnings Total liabilities \& stockholders' equity $310,20053,600$295,00035,200 BUFFALO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $335,075 Cost of goods sold Gross profit 159,875175,200 Operating expenses Operating income 39,775120,100 Interest expense $11,400 Gainon Income tax expense Net income 1. Dividends in the amount of $5,900 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020