Country Feed Inc., a Saskatchewan-based farm and ranch livestock feed distributor, began operations on January 1, 2022. Its post-closing trial balance at December 31, 2022 and 2023 is shown below along with some other information.

Other information regarding Country Feed Inc. and its activities during 2023:1. 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.

RequiredUsing the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2023.

Analysis Component:Country Feed Inc.’s income statement showed a loss of $7,600 for the year ended December 31, 2023, 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.

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Country Feed Inc. Income Statement For Year Ended December 31, 2023 Revenues: Sales Cost of goods sold Gross profit Expenses and other: Other expenses Depreciation expense Total expenses and other Operating profit (loss) Gain on sale of plant assets Profit (Loss) Country Feed Inc. Post-Closing Trial Balance December 31 2023 2022 Account Cash 167,600 18,000 $ 63,200 $ 65,200 121,600 128,400 Receivables Merchandise inventory 43,200 38,800 Property, plant, and equipment 298,400 272,400 Accumulated depreciation 167,600 165,600 78,800 78,000 5,600 7,200 115,200 75,200 80,000 80,000 79,200 98,800 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings 513,600 343,600 170,000 185,600 (15,600) 8,000 (7,600)