CHAPTER 16 Reporting and Analyzing Cash Flow Problem 16-11B Preparing the statement of cash flows indirect method) LO5, 6 CHECK FIGURE: Net cash in iow from investing activM.000 Country Feed Inc. a Saskatchwan-based farm and ranch livestock feed distributor, began opera January 1, 2019. Its post-clouing trial balance at December 31, 2019 and 2020 is shown below along other information Country Feed Inc. Post Closing Trial Balance 513.600 30.600 170.000 Country Feed Inc Income Statement For Year Ended December 31, 2020 Revenge Sales Cost of goods sold Gross pront Expenses and other Other expenses 167.600 Depreciation expense 18.000 Total expenses and other 185.600 Operating pronto) 115.500 Gain on sale of plant assets 8.000 Profit Loss 17600 Account Cash Recewables Merchandise inventory Property, plant and equipment Accumulated depreciation Accounts payable Accredits Notes payable Common shares Retained earnings December 2020 2013 563.2005 121.600 2010 43,200 3 298.400 272,400 167.600 1650 78.800 78.000 5,800 7200 115,200 75.200 80.000 80.000 79,200 98.800 Other information regarding Country Feed Inc. and its activities during 2020: 1. Assume all accounts have normal balances 2. Cash dividends were declared and paid during the year. 3. Plant assets worth $70,000 were purchased during the year by paying cash of $20,000 and issuing a long term note payable for the balance. 4. Plant assets were sold during the year. Required Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2020 Analysis Component: Country Feed Inc.'s income statement showed a loss of $7,600 for the year ended December 31, 2020, yet the statement of cash flows shows net cash inflows from operating activities of $4,000 for the same period. Explain what this difference means. Problem 16-12B Preparing the statement of cash flows (direct method) LO7 CHECK FIGURE: Net cash outflow from financing activities - $22.000 Required Refer to the information in Problem 16-113. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All accounts payable balances result from merchandise purchases. b. All sales are credit sales. c. All credits to accounts receivable are receipts from customers. d. All debits to accounts payable result from payments for merchandise. e. All debits and credits to accrued liabilities result from other expenses