The financial statements of Safa Company are presented below: \begin{tabular}{|l|c|c|} \hline Comparative Balance Sheets & December 2018 & December 2017 \\ \hline Cash & $5,000 & $6,600 \\ \hline A/R & 34,200 & 36,000 \\ \hline Inventory & 61,400 & 59,000 \\ \hline Land & 67,200 & 50,000 \\ \hline Building and equipment & 325,600 & 286,000 \\ \hline Accumulated depreciation & (130,600) & (103,600) \\ \hline Totals & $362,800 & $334,000 \\ \hline & & \\ \hline A/P & $32,600 & $32,000 \\ \hline Unearned revenue & 19,800 & 22,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|} \hline Deferred tax liability & 20,000 & 18,800 \\ \hline B/P & 100,000 & 100,000 \\ \hline Discount on B/P & (13,200) & (14,000) \\ \hline C/S & 170,000 & 160,000 \\ \hline R/E & 33,600 & 15,200 \\ \hline Totals & $362,800 & $334,000 \\ \hline & & \\ \hline 2018 Income Statement & & \\ \hline Sales revenue & $606,000 \\ \hline CGS & (505,325) \\ \hline Depreciation expense & (31,600) \\ \hline Sales commission (all cash) & (6,800) \\ \hline Interest expense & (8,800) \\ \hline Gain on sale of equipment & 3,400 \\ \hline Income before taxes & 56,875 \\ \hline Income tax expense & (20,475) \\ \hline Net income & $36,400 \\ \hline \end{tabular} Additional information Equipment with a cost of $12,600 and a book value of $8,000 was sold for $11,400. Cash dividends of \$?? were paid in 2018. Required: a. Prepare a statement of CFS for 2018, using the indirect method. (30 marks) b. Prepare the CFO section using the DIRECT method. (20 marks) c. Compute FCF using the formula FCF=NOPATNOA20 marks It is helpful to construct the table below 20182017 OA OL NOA