Sales $800,000

Cost of goods sold 500,000

Gross Profit 300,000

Selling and Operating Expense 213,000

Net Operating Income 87,000

Non-operating items: -

Gain on sale of investing 7,000

Loss on sale of equipment (4000) 3,000

Income before taxes 90,000

Income Taxes 27,000

Net Income 63,000

During 2019, BestBuy sold some equipment for $20,000 that had cost $40,000 and on which there was accumulated depreciation of $16,000. In addition, the company sold the long-term investment for $10,000 that had cost $3,000 when purchased several years ago. A cash dividend was paid during 2019, and the company repurchased $40,000 of its own stock. BestBuy did not retire any bonds during 2019.

BestBuy Inc.

Balance Sheet

2019

	2018	2019
Cash	15,000	9,000
Accounts Receivable	240,000	340,000
Inventory	175,000	125,000
Prepaid Expenses	6,000	10,000
Total Current Assets:	436,000	484,000
Property, Plant and Equipment	470,000	610,000
Less: Accumulated Depreciation	85,000	93,000
Net Property Plant and Equipment	385,000	517,000
Long Term Investment	19,000	16,000
Total Assets:	840,000	1017,000
Accounts Payable	230,000	310,000
Accrued Liabilities	72,000	60,000
Income Taxes Payable	34,000	40,000
Total Current Liabilities:	336,000	410,000
Bonds Payable	180,000	290,000
Total Liabilities:	516,000	700,000
Common Stock	250,000	210,000
Retained Earnings	74,000	107,000
Total Stockholders Equity	324,000	317,000
Total Liabilities and Stockholders Equity	840,000	1,017,000

Required:

Prepare a Cash Flow statement including operating, financing and investing activities. Place the bracket around the cash outlays. Operating activities should be prepared by direct Method.