Refer to the information in Problem 16-11B. 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.

Problem 16-11B

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Country Feed Inc. Post-Closing Trlal Balance Country Feed Inc. Income Statement For Year Ended December 31, 2020 December 31 Revenues: Account 2020 2019 Sales. 513,600 Cash. $ 63,200 $ 65,200 Cost of goods sold. 343,600 Receivables. 121,600 128,400 Gross profit. 170,000 Merchandise inventory. 43,200 38,800 Expenses and other: Property, plant, and equipment.. Accumulated depreciation. 298,400 272,400 Other expenses.. 167,600 167,600 165,600 Depreciation expense. 18,000 Accounts payable. 78,800 78,000 Total expenses and other.. 185,600 Accrued liabilities.. 5,600 7,200 Operating profit (loss) . (15,600) Notes payable. 115,200 75,200 Gain on sale of plant assets.. 8,000 Common shares. 80,000 80,000 Profit (Loss). (7,600) Retained earnings.. 79,200 98,800