The financial statements of Safa Company are presented below: Comparative Balance Sheets December 2018 $5,000 34,200...

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The financial statements of Safa Company are presented below: Comparative Balance Sheets December 2018 $5,000 34,200 61,400 67,200 325,600 (130,600) $362,800 Cash A/R Inventory Land Building and equipment Accumulated depreciation Totals A/P Unearned revenue Deferred tax liability B/P Discount on B/P C/S R/E Totals 2018 Income Statement Sales revenue CGS Depreciation expense Sales commission (all cash) Interest expense Gain on sale of equipment Income before taxes Income tax expense Net income $32,600 19,800 20,000 100,000 (13,200) 170,000 33,600 $362,800 December 2017 $ 6,600 36,000 59,000 50,000 286,000 (103,600) $334,000 $ 32,000 22,000 18,800 100,000 (14,000) 160,000 15,200 $334,000 $606,000 (505,325) (31,600) (6,800) (8,800) 3,400 56,875 (20,475) $36,400 Additional information Equipment with a cost of $12,600 and a book value of $8,000 was sold for $11,400. Cash dividends of $?? were paid in 2018. Required: a. b. C. Prepare a statement of CFS for 2018, using the indirect method. (16 marks) Prepare the CFO section using the DIRECT method. (6 marks) Compute FCF using the formula FCF=NOPAT-ANOA 8 marks The financial statements of Safa Company are presented below: Comparative Balance Sheets December 2018 $5,000 34,200 61,400 67,200 325,600 (130,600) $362,800 Cash A/R Inventory Land Building and equipment Accumulated depreciation Totals A/P Unearned revenue Deferred tax liability B/P Discount on B/P C/S R/E Totals 2018 Income Statement Sales revenue CGS Depreciation expense Sales commission (all cash) Interest expense Gain on sale of equipment Income before taxes Income tax expense Net income $32,600 19,800 20,000 100,000 (13,200) 170,000 33,600 $362,800 December 2017 $ 6,600 36,000 59,000 50,000 286,000 (103,600) $334,000 $ 32,000 22,000 18,800 100,000 (14,000) 160,000 15,200 $334,000 $606,000 (505,325) (31,600) (6,800) (8,800) 3,400 56,875 (20,475) $36,400 Additional information Equipment with a cost of $12,600 and a book value of $8,000 was sold for $11,400. Cash dividends of $?? were paid in 2018. Required: a. b. C. Prepare a statement of CFS for 2018, using the indirect method. (16 marks) Prepare the CFO section using the DIRECT method. (6 marks) Compute FCF using the formula FCF=NOPAT-ANOA 8 marks