Question #1 (31 marks) Consider I/S for 2019 Sales CGS $6,583 3.427 3,156 GP 2.349 807 Operating expenses(OPE) Profits from operations (EBIT) Interest expense Profit before tax (EBT) Tax expense Profit (NI) 124 683 203 $ 480 Selected current assets and current liabilities, and RE are reported on comparative B/S at December 31: 775 2019 2018 Cash SISO S40 A/R 610 Inventory 834 867 A/P 521 Int/P 50 60 Tax/P 53 25 RE S1,180 5800 S01 Additional information: Operating expenses include salaries expense of $1,000, depreciation expense of $300, amortization expense of $80, and a loss on the disposal of machinery of $24. The Machinery that was sold for a loss of $24 had a book value of $294 New machinery was purchased during the year for$1,250. It was partially financed by a bank loan payable issued for $400. (Note. The bank loan payable is a non-cash transaction) Dividends were paid in 2019 a. Prepare CFS using the indirect method. (14 marks) b. Prepare CFO using the DIRECT method (8 marks) c. Calculate FCF = NOPAT - change in NOA. You should show OA, OL, and NOA for 2019 and 2018, and then calculate the change in NOA (9 marks)