Refer to the information for Canada Post in AP5€“ 1.

Required:
1. Prepare a spreadsheet similar to Exhibit 5.4 . Show the effects of the January 2013 transactions on the appropriate accounts, and on the three cash flow categories.
2. Prepare a table similar to Exhibit 5.5 showing both the cash and non- cash components of revenues and expenses for January 2013.
3. Prepare the operating activities section of the statement of cash flows for Canada Post for January 2013 using the direct method.
4. As a user of financial statements, would you prefer to see the cash flow from operating activities reported using the direct method or the indirect method? Justify your answer.

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Account Non-curtent assets Trade payables Short-tem investments Accrued liabilitiee Long-tem borrowings Deferred revenue Balance $4,798 Account Equity of Canada Trade receivables Balance $1,533 662 492 842 Supplies inventory 732 Cash 271 75 2,666 1127 Provisions 129 Other non-current liabilities