B o D The following information taken from the operating section of the statement of cash flows (Direct Method) of DISTAFF & SPEAR Inc.: 58000 Cash collections from customers Cash payments to suppliers for purchases Cash payments for operating expenses Cash payments for current period income taxes 26000 20000 9000 The following information obtained from the income statement of DISTAFF & SPEAR Inc.: 9000 4000 2500 Depreciation expense 1 Gain on disposition of equipment 2 Amortization of intangibles 3 1 5 In addition, the following information is obtained from the balance sheets of DISTAFF & SPEAR Inc.: 6750 6750 4000 4450 2000 7 Increase in A/R 3 Increase in inventory 3 Increase in A/P (related to purchases) Decrease in accrued liability (related to operating expenses) 1 Decrease in tax payable 2 3 ..Prepare the income statement for the current year (12 marks) 4 b.Prepare CFO using the INDIRECT method (8 marks) 5 6 7 e