Please also help indicate what items are not cash and would not be computed in the discussion. Much appreciated in advance.

Instructions Please complete and upload your solution to CT13.4 in an Excel spreadsheet. For Part a., use Practice Exercise #2, Part a., as a format model. And for your Net Income (Loss) number, give it an asterisk (*) and show your detailed calculations in an abbreviated statement below the Cash Flow Statement. For Part b., please be sure to directly answer the question, referring to your numerical analysis, and to comment on how they might both have a legitimate point, given the numbers. Decision-Making Across the Organization CT13.4 Tom Epps and Mary Jones are examining the following statement of cash flows for Guthrie Company for the year ended January 31, 2020. $380,000 420,000 80,000 55,000 20.000 6,000 Guthrie Company Statement of Cash Flows For the Year Ended January 31, 2020 Sources of cash From sales of merchandise From sale of capital stock From sale of investment (purchased below) From depreciation From issuance of note for truck From interest on investments Total sources of cash Uses of cash For purchase of fixtures and equipment For merchandise purchased for resale For operating expenses (including depreciation) For purchase of investment For purchase of truck by issuance of note For purchase of treasury stock For interest on note payable Total uses of cash Net increase in cash 961,000 330,000 258,000 160.000 75,000 20,000 10,000 3,000 856,000 $105.000 Tom claims that Guthrie's statement of cash flows is an excellent portrayal of a superb first year with cash increasing $105,000. Mary replies that it was not a superb first year. Rather, she says, the year was an operating failure, that the statement is presented incorrectly, and that $105,000 is not the actual increase in cash. The cash balance at the beginning of the year was $140,000. Assume that all merchan- dise purchased has been sold. a. Using the data provided, prepare a statement of cash flows in proper form using the indirect method. The only noncash items in the income statement are depreciation and the gain from the sale of the investment. b. With whom do you agree, Tom or Mary? Explain your position