Question #1 (20 marks) The following information is taken from the operating section of the statement of cash flows (Direct Method) of DISTAFF & SPEAR Inc.: Cash collections from customers Cash payments to suppliers for purchases Cash payments for operating expenses Cash payments for current period income taxes $58,000 26,000 20,000 9,000 The following information is obtained from the income statement of DISTAFF & SPEAR Inc.: Depreciation expense Gain on disposition of equipment Amortization of intangibles $9,000 4,000 2,500 In addition, the following information is obtained from the balance sheets of DISTAFF & SPEAR Inc.: Increase in A/R Increase in inventory Increase in A/P (related to purchases) Decrease in accrued liability (related to operating expenses) Decrease in tax payable $6,750 6,750 4,000 4,450 2,000 Required: a. Prepare the income statement for the current year (12 marks) b. Prepare CFO using the INDIRECT method (8 marks)