Presented below are the financial statements of Buffalo Industries. Buffalo Industries Comparative Balance Sheets December 31 Assets 2022 2021 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation $ 45,500 26,000 36,400 78,000 (41,600 ) $144,300 $ 26,000 18,200 26,000 101,400 (31,200 ) $140,400 Total $ 19,500 10,400 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 24,700 9,100 22,100 23,400 65,000 42,900 18,200 49,400 $140,400 $144,300 Buffalo Industries Income Statement For the Year Ended December 31, 2022 Sales revenue $314,600 Cost of goods sold 227,500 Gross profit 87,100 Selling expenses $23,400 Administrative expenses 7,800 31,200 Income from operations 55,900 Interest expense 3,900 Income before income taxes 52,000 Income tax expense 10,400 Net income $ 41,600 Additional data: 1. 2. Depreciation expense was $22,750. Dividends declared and paid were $26,000. During the year equipment was sold for $11,050 cash. This equipment cost $23,400 originally and had accumulated depreciation of $12,350 at the time of sale. 3. Further analysis reveals the following. 1. 2. Accounts payable pertain to merchandise suppliers. All operating expenses except for depreciation were paid in cash. All depreciation expense is in the selling expense category. All sales and purchases are on account. 3. 4. 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).) Buffalo Industries Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities For Income Taxes $ $ > A > > H