QUESTION 1 Rashid started a business on February 1,2017 called ABC, Inc. ABC is a retail company that sells vintage jewelry and accessories, the following information was available on ABC Inc.: Cash Sales of jewelry $70,000 Sales on account for accessories 15,550 Cost of Goods which were sold and paid for 45,000 during February Expenses during January incurred, and paid for, during February Salaries $5,000 Telephone 205 Office supplies (all used) 155 Electricity 300 Utilities will not be paid until March, 2017) 1000 Requirements: a Using the above information, prepare the income statement for ABC Inc, for the month ended February 28, 2017. (Rubrics: 0.25 mark for each correct element and correct form for Income Statement and heading , 0.5 mark for the correct calculations of Net Income. Total = 3 marks) b What is the net cash flows from operating activities to be presented on the statement of cash flows or the month ended February 28, 2017? (Rubrics: 1 mark for correct calculation and answer. Total = 1 mark)