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Buffalo's Custum Clothing Ltd$.($BCC$)$ sells branded clothing to resorts and corporations. The company's comparative francis statements are presented below.

BUFFALO'S CUSTOM CLOTHING LTD$.$ STATEMENT OF FINANCIAL POSITION December $31$

Current Assets

$2023$

$2022$

Cash

$$139000$

$$78\mathrm{.}300$

Accounts receivable

$30\mathrm{.}000$

$23700$

Inventory

$73000$

$43\mathrm{.}800$

Prepaid experises

$9600$

$2800$

Total current assets

$251,600$

$148\mathrm{.}400$

Property and equipment

Property and equipment

$100,00$

$137,000$

Less: Accumulated depreciation

$153,900)$

$(52\mathrm{.}700)$

Net property and equipment

$46,100$

$84,300$

TOTAL ASSETS

$$297,700$

$$232,700$

Current liabilities

Accounts payable

$$25\mathrm{.}100$

$$32\mathrm{.}000$

Salaries payable

$9,400$

$5,000$

Interest payable

$5,300$

$8\mathrm{.}300$

Total current liabilities

$39,800$

$45,300$

Loan payable

$121,000$

$156\mathrm{.}300$

Total liabilities

$160\mathrm{.}800$

Shareholders' equity

Common shares

$19\mathrm{.}000$

$1,500$

Retained earnings

$117\mathrm{.}900$

$74,900$

Total shareholders' equity

$136\mathrm{.}900$

$76,400$

$$297,700$

$$232,700$

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$<$

$>$

BUFFALO'S CUSTOM CLOTHING LTD$.$ INCOME STATEMENT For the Years Ended December $31$

$2023$

$2022$

Sales revenue

$$909,000$

$$773\mathrm{.}000$

Cost of sales

$662,000$

$552,000$

Gross margin

$247,000$

$221,000$

Experises

Salaries expense

$106\mathrm{.}000$

$93\mathrm{.}000$

Interest expense

$5,000$

$2\mathrm{.}100$

Other expenses

$8,300$

$6\mathrm{.}100$

Depreciation expense

$30,000$

$32\mathrm{.}200$

Total expenses

$149\mathrm{.}300$

$133,400$

Operating income

$97,700$

$87,600$

Loss un disposal of equipment

$1,200$

$1,000$

Income tax expense

$24,425$

$18,300$

Net Income

$<$

$>$

$$

$$72,075$

$$68,300$

Following is additional information conceming BCC s transactions during the year ended December $31,2023$:

Equipment costing $$35,000$ was purchased by paying $$24,000$ cash and issuing $400$ commion shares

Equipment costing $$72\mathrm{.}000$ that was purchased at the beginning of $2022$ was sold at the und of $2023$ for $$421300$ Straigh line depreciation had been used with an exnected asset life of $5$ years and a residiaal value of $$0.$

The other expenses relate to prepaid items,

In order to supplement its cash, BCC increased its hanic loan by $$10\mathrm{.}000$

Cash dividents of $$29,075$ were paid at the end of the fiscal year,

BCC has a policy to classify dividends paid as financing activities and interest poid as operating activities on the statement of cash flows.

Cost of sales includes $$184\mathrm{.}000)$ ot direct labour costs

Question $3$ of $4$

$>$

Cost of sales includes $5184\mathrm{.}000$ af direct to CORTE

$-1253$

Prepare a statement of cash flows for BCC for the year ended December $31,2023,$ using the direct method BCC follows IFRS $($Show amounts that decrease cash flow with either a negative sign eg$.-15,000$ or in parenthesis eg $(15,000))$

Buffalo's Custom Clothing Ltd$.$ Statement of Cash Flows

For the Wear Ended December $31,2021$

Cash Flows from Operating Activities

Cash Routed from Customers

$5$

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