Question 2 Country Feed Inc., a Saskatchewan-based farm and ranch livestock feed distributor, began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information Country Feed Inc. Income Statement For Year Ended December 31, 2017 513,600 343,600 170,000 Revenues: Sales..... Cost of goods sold. Gross Profit..... Expenses and others Other expenses Depreciation expense ....... Total expenses and other....... Operating Profit (Loss)...... Gain on sale of plant assets.. Profit (Loss)... 167,600 18,000 185,600 (15,600) 8,000 (7,600) Country Feed Inc. Post-Closing Trial Balance Account Cash.. Receivables.. Merchandise inventory... Property, plant, and equipment Accumulated depreciation ... Accounts payable Accrued liabilities.. Notes payable. Common shares Retained earnings...................... December 31 2017 2016 $63,200 $ 65,200 121,600 128,400 43,200 38,800 298,400 272,400 167,600 165,600 78,800 78,000 5,600 7,200 115,200 75,200 80,000 80,000 79,200 48,800 Other information regarding Country Feed Inc. and its activities during 2017 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 Plant assets were sold during the year. 4. Question 3 Required: Refer to the information in Question 2 prepare the operating activities section of the statement of cash flows for 2017 using the direct method to report cash inflows and outflows from operating activities Other information: a b. c. d. All accounts payable balances result from merchandise purchases All sales are credit sales. All credits to accounts receivable are receipts from customers. All debits to accounts payable result from payments for merchandise All debits and credits to accrued liabilities result from other expenses e