SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1 through Chapter 11.) SP12. 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 flows for Kate's Cards. Additional information: 1. There was 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, 2016, using the indirect method. Hint: Since this was Kate's first year of operations, the beginning balance sheet account balances were zero. Prepare a statement of cash flows for Kate's Cards for the year ended August 31, 2016, using the direct method. (Appendix 12A) b