The following financial information is available for Buffalo Incorporated for the 20X3 fiscal year:

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. Preferred shares were issued for cash on 1 March 20X3. Dividends of $ 50,000 were paid on the noncumulative preferred shares.
5. On 1 September 20X3, 25,000 common shares were purchased and retired for $ 55,000, their original issuance price. On 1 November 20X3, 65,000 common shares were issued in exchange for machinery and valued at $ 120,000.
6. Because of its loss, the company received a refund of taxes paid in prior years of $ 54,000.


Required:
1. Prepare the SCF, in good form. Use the indirect method for cash flows from operations. Omit the separate disclosure of cash flows for interest, investment income, and income tax. Include a list of non- cash transactions that would be presented in the disclosure notes.
2. Repeat the operating activities section of the SCF, using the direct method for cash flows from operations.

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Statement of Financial Position As at 31 December 20X3 20X2 Cash Rece ivables Marketable securities Inventory Land Building Accumulated depreciation, building Machinery Accumulated depreciation, machinery Goodwill $5,000 20,000 180,000 230,000 632,000 410,000 1,040,000 1120,000 (380,000) 875,000 (212,000) 110,000 110,000 220,000 190,000 731,000 330,000 470,000) 1,080,000 (219,000) $3.017.000 $2985,000 Current liabilities Bonds payable Preferred shares Common shares Retained earnings $ 256,000 331,000 1,000,000 1,000,000 843,000 500,000 311,000 1,048,000 565,000 148,000 $3,017. 000 $2,985.000 Statement of Comprehensive Income For the year ended 31 December 20X3 Sales Cost of goods sold Gross profit Depreciation $1.684,000 103,000 581,000 110,000 75,000 115.000 361,000 40,000 (22,000) Building Machinery Interest Operating expenses Selling expenses Gain on sale of land Loss on sale of machine Net earnings (loss) before income tax Income tax recovery 706,000 (125,000) 54,000 Net earnings (loss) and comprehensive income (loss) $ (71000)