2. the indirect method. (LO 5,6, E22-14 (Statement of Cash Flows-Direct and Indirect Methods) Tuit Inc,a greeting card company 8,9) ASPE, had the following statements prepared as at December 31, 2017 that follows TUIT INC. Comparative Statement of Financial Position December 31 2017 53,625 2016 25,000 Cash Accounts receivable Inventory Prepaid rent 58,000 40,000 5,000 51,000 60,000 4,000 Ecumusied depeciation-eument 35.000 $0,00 154,000 130,000 (35,000)(25,000) 20,000 50,000 Goodwill Total assets $295625 $295.000 46,000 40,000 Accounts payable Income tax payable Salaries and wages payable Short-term loans payable Long-term loans payable Common shares Retained earnings FINANCE 6,000 4,000 10,000 69,000 130.000 39,62536.000 4,000 8,000 8,000 60,000 130,000 Total liabilities and shareholders' equity $295.625 $295,000 TUIT INC. Income Statement Year Ending December 31, 2017 $338,150 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense 173.150 120.000 53.150 $11,400 30,000 Gain on sale of equipment Income before income tax Income tax expense Net income 13,750 $ 9,625 Additional information: I. Dividends on common shares in the amount of $6,000 were declared and paid during 2017 is included in operating expenses, as is salaries and wages expense of $69,000. 2. Depreciation expense 3. Equipment with a cost of$20,000 that was 70% depreciated was sold during 2017. Instructions (a) Prepare a statement of cash flows using the direct method. (b) Prepare a statement of cash flows using the indirect method. (e) Does Tuit Inc. have any options on how to classify interest and dividends paid on the statement of cash flows? NG( From the pernpective of an investor who is interested in investing in mature, successfal companies, comment on PER Tuit Inc.'s sources and uses of cash by analyzing the company's statement of cash flows