Required:

Using the indirect method, prepare the Statement of Cash Flow, in good form. Ensure that your document is portfolio ready. There will be points awarded for format.

When preparing your assignment using a spreadsheet, follow the instructions below:

• Use cell references in all formulas and functions (no numbers).
• Use a formula or function for all calculations, dont type in the answer.
• Use a formula for transferring data from one sheet to another.
• Use the sum function appropriately. It should be used when adding more than two consecutive numbers. It should not be used when subtracting, multiplying or dividing.
• Format accordingly:
  • Ensure all values are accompanied by an appropriate and clear label.
  • Ensure that numbers have consistent alignment and format.
  • Ensure that columns are wide enough to display all data in the cell.

BUFFALO INCORPORATED Balance Sheet As at 31 December 2021 Cash Receivables Marketable securities (short term) Inventory Land Building Accumulated depreciation, building Machinery Accumulated depreciation, machinery Goodwill 2021 $5,000 220,000 190,000 731,000 330,000 1,040,000 (470,000) 1,080,000 (219,000) 110,000 $ 3,017,000 2020 $ 20,000 180,000 230,000 632,000 410,000 1,120,000 (380,000) 875,000 (212,000) 110,000 $ 2,985,000 Accounts payable Bonds payable Preferred shares Common shares Retained earnings $ 256,000 1,000,000 1,048,000 565,000 148,000 $ 3,017,000 $ 331,000 1,000,000 843,000 500,000 311,000 $ 2,985,000 $ 1,684,000 1,103,000 581,000 BUFFALO INCORPORATED Income Statement For the year ended 31 December 2021 Sales Cost of goods sold Gross profit Depreciation, Building 110,000 Depreciation, Machinery 175,000 Interest 115,000 Operating expenses 361,000 Selling expenses 40,000 Gain on sale of land (22,000) Loss on sale of machine 27,000 Net earnings (loss) before income tax Income tax recovery Net earnings (loss) and comprehensive income (loss) 706,000 (125,000) 54,000 $ (71,000) ADDITIONAL INFORMATION: 1. Marketable securities were sold at their carrying value. The marketable securities are not cash equivalents. 2. A partially depreciated building was sold for an amount equal to its net book value. 3. Cash of $40,000 was received on the sale of a machine. 4. On September 1, 2021, 25,000 common shares were purchased and retired for $55,000, their original issuance price. On November 1, 2021, 65,000 common shares were issued in exchange for machinery. 5. Additional machinery was purchased on December 3, 2021. 6. Preferred shares were issued for cash on March 1, 2021. Dividends of $50,000 were paid on the non-cumulative preferred shares