APrepare a stale for wages and other operal X (Note: This is a continmation of the Serial Problem: Kate's Cards from Chapter 1 through Chapter 11.) Kate has just completed her first year running Kate's Cards. She has been preparing monthly income statements and balance sheets, so she knows that her company has been profitable and that there is cash in the bank. She has not, however, prepared a statement of cash flows. Kate provides you with the year-end income statement and balance sheet and asks that you prepare a statement of cash flow SERIAL PROBLEM: KA TE'S CARDS SP12 ates Cards for Kate's Cards Additional information: 1. There were no disposals of equipment during the year. 2 Dividends in the amount of $1,300 were paid in cash during the year 3. Prepaid expenses relate to operating expenses. Required a Prepare a statement of cash flows for Kate's Cards for the year ended August 31, 2019. usine the indirect method. Hint: Since this was Kate's first year of operations, the beginning balance sheet account balances were zero. b. Prepare a statement of cash flows for Kate's Cards for the year ended August 31, 2019, using the direct method. (Appendix 12A) Chapter 12 Statement of Cash Flow mbdge KATE'S CARDS Income Statement Year Ended August 31, 2019 Sales revenue. Cost of goods sold $185,000 106.000- Gross profit. - Operating expenses Wages.. Consulting. 79.000 18.000 11,850 1,200 2,400 14,400 3,250 Insurance Utities Rent Depreciation Total operating expenses 51,100 Income from operations Interest expense.. 27,900 900 Income before income tax Income tax expense. 27,000 5,400 $ 21,600 Net income KATE'S CARDS Balance Sheet As of August 31, 2019 Assets Current assets Cash... Accounts receivable Inventory. Prepaid insurance. $17,400 11,000 16,000 1,000 45,400 17,500 Total current assets Equipment Accumulated depreciation (3,250) $59,650 Total assets Liabilities Current liabilities $ 6,200 Accounts payable. Unearned revenue Other current liabilities 1,250 1,900 Total current liabilities. 9,350 Note payable 15,000 Total liabilities. 24,350 Stockholders' equity Common stock.. Additional paid-in-capital Preferred stock. Retained earnings Total stockholders' equity. 500 9,500 5,000 20,300 35,300 Total liabilities and stockholders' equity $59,650