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Your answer is partially correct. Buffalo Corporation had the following 2020 income statement. Revenues   $104,000 Expenses   62,000     $42,000 In 2020, Buffalo had the following activity in selected accounts. Accounts Receivable 1/1/20 22,000 Revenues 104,000 12/31/20 33,000 Write-offs 1,000 Collections 92,000     Allowance for Doubtful Accounts

Your answer is partially correct. Buffalo Corporation had the following 2020 income statement. Revenues   $104,000 Expenses   62,000     $42,000 In 2020, Buffalo had the following activity in selected accounts. Accounts Receivable 1/1/20 22,000 Revenues 104,000 12/31/20 33,000 Write-offs 1,000 Collections 92,000     Allowance for Doubtful Accounts

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9.

Your answer is partially correct.
Buffalo Corporation had the following 2020 income statement.

Revenues  
$104,000
Expenses  
62,000
   
$42,000

In 2020, Buffalo had the following activity in selected accounts.

Accounts Receivable
1/1/20 22,000
Revenues 104,000
12/31/20 33,000
Write-offs 1,000
Collections 92,000
   
Allowance for Doubtful Accounts
   
Write-offs 1,000
   
1/1/20 1,000
Bad debt expense 1,900
12/31/20 1,900

(a) Prepare Buffalo’s cash flows from operating activities section of the statement of cash flows using the direct method.

Buffalo Corporation
Statement of Cash Flows-Direct Method (Partial)
                                                           
                                                           
    
                                                           
  
$ 
                                                           
  
 
                                                           
  
$ 

(b) Prepare Buffalo’s cash flows from operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Buffalo Corporation
Statement of Cash Flows-Indirect Method (Partial)
                                                           
                                                           
    
                                                           
  
$ 
                                                           
  
 
                                                           
  
$ 
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